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Deviations from rational decision-making due to limited computational resources have been studied in the field of bounded rationality, originally proposed by Herbert Simon. There have been a number of different approaches to model bounded…

Artificial Intelligence · Computer Science 2015-11-06 Jordi Grau-Moya , Daniel A. Braun

Subjective expected utility theory assumes that decision-makers possess unlimited computational resources to reason about their choices; however, virtually all decisions in everyday life are made under resource constraints - i.e.…

Machine Learning · Statistics 2016-10-07 Pedro A. Ortega , Alan A. Stocker

Information-theoretic bounded rationality describes utility-optimizing decision-makers whose limited information-processing capabilities are formalized by information constraints. One of the consequences of bounded rationality is that…

Machine Learning · Computer Science 2020-06-30 Heinke Hihn , Sebastian Gottwald , Daniel A. Braun

The theory of rational choice assumes that when people make decisions they do so in order to maximize their utility. In order to achieve this goal they ought to use all the information available and consider all the choices available to…

Artificial Intelligence · Computer Science 2017-04-07 Tshilidzi Marwala

In this paper the theory of semi-bounded rationality is proposed as an extension of the theory of bounded rationality. In particular, it is proposed that a decision making process involves two components and these are the correlation…

Artificial Intelligence · Computer Science 2013-05-28 Tshilidzi Marwala

We consider adaptive decision-making problems where an agent optimizes a cumulative performance objective by repeatedly choosing among a finite set of options. Compared to the classical prediction-with-expert-advice set-up, we consider…

Machine Learning · Computer Science 2023-04-10 Michael Muehlebach

Methods for learning optimal policies in autonomous agents often assume that the way the domain is conceptualised---its possible states and actions and their causal structure---is known in advance and does not change during learning. This…

Artificial Intelligence · Computer Science 2018-01-11 Craig Innes , Alex Lascarides , Stefano V Albrecht , Subramanian Ramamoorthy , Benjamin Rosman

Bounded rationality is an important consideration stemming from the fact that agents often have limits on their processing abilities, making the assumption of perfect rationality inapplicable to many real tasks. We propose an…

Information Theory · Computer Science 2021-05-28 Benjamin Patrick Evans , Mikhail Prokopenko

The notion of bounded rationality originated from the insight that perfectly rational behavior cannot be realized by agents with limited cognitive or computational resources. Research on bounded rationality, mainly initiated by Herbert…

Artificial Intelligence · Computer Science 2021-09-13 Eyke Hüllermeier , Felix Mohr , Alexander Tornede , Marcel Wever

Using results from neurobiology on perceptual decision making and value-based decision making, the problem of decision making between lotteries is reformulated in an abstract space where uncertain prospects are mapped to corresponding…

Neurons and Cognition · Quantitative Biology 2020-01-03 Adnan Rebei

We are witnessing an increasing use of data-driven predictive models to inform decisions. As decisions have implications for individuals and society, there is increasing pressure on decision makers to be transparent about their decision…

Specialization and hierarchical organization are important features of efficient collaboration in economical, artificial, and biological systems. Here, we investigate the hypothesis that both features can be explained by the fact that each…

Multiagent Systems · Computer Science 2018-09-19 Sebastian Gottwald , Daniel A. Braun

In this semi-tutorial paper, we first review the information-theoretic approach to account for the computational costs incurred during the search for optimal actions in a sequential decision-making problem. The traditional (MDP) framework…

Artificial Intelligence · Computer Science 2021-02-23 Daniel T. Larsson , Daniel Braun , Panagiotis Tsiotras

This paper focuses on managing the cost of deliberation before action. In many problems, the overall quality of the solution reflects costs incurred and resources consumed in deliberation as well as the cost and benefit of execution, when…

Artificial Intelligence · Computer Science 2013-04-05 David Einav , Michael R. Fehling

Adaptive systems -- such as a biological organism gaining survival advantage, an autonomous robot executing a functional task, or a motor protein transporting intracellular nutrients -- must model the regularities and stochasticity in their…

Statistical Mechanics · Physics 2021-04-13 A. B. Boyd , J. P. Crutchfield , M. Gu

Predicting future observations plays a central role in machine learning, biology, economics, and many other fields. It lies at the heart of organizational principles such as the variational free energy principle and has even been shown --…

Machine Learning · Computer Science 2025-04-09 Lukas J. Fiderer , Paul C. Barth , Isaac D. Smith , Hans J. Briegel

This paper presents a novel approach to analyze human decision-making that involves comparing the behavior of professional chess players relative to a computational benchmark of cognitively bounded rationality. This benchmark is constructed…

General Economics · Economics 2020-12-03 Dainis Zegners , Uwe Sunde , Anthony Strittmatter

Classic mechanism/information design imposes the assumption that agents are fully rational, meaning each of them always selects the action that maximizes her expected utility. Yet many empirical evidence suggests that human decisions may…

Computer Science and Game Theory · Computer Science 2023-11-14 Yiding Feng , Chien-Ju Ho , Wei Tang

This paper describes a novel approach to planning which takes advantage of decision theory to greatly improve robustness in an uncertain environment. We present an algorithm which computes conditional plans of maximum expected utility. This…

Artificial Intelligence · Computer Science 2013-02-28 Stephen G. Pimentel , Lawrence M. Brem

We study the subtlety of optimal paternalism when a utilitarian planner has the power to design a discrete choice set for a heterogeneous population with bounded rationality. We first consider the planning problem in abstraction. We show…

Econometrics · Economics 2026-01-23 Charles F. Manski , Eytan Sheshinski