Rationality Quotes - page 3
In Administrative Behavior, bounded rationality is largely characterized as a residual category - rationality is bounded when it falls short of omniscience. And the failures of omniscience are largely failures of knowing all the alternatives, uncertainty about relevant exogenous events, and inability to calculate consequences. There was needed a more positive and formal characterization of the mechanisms of choice under conditions of bounded rationality... Two concepts are central to the characterization: search and satisficing.
Herbert Simon
Broadly stated, the task is to replace the global rationality of economic man with a kind of rational behavior that is compatible with the access to information and the computational capacities that are actually possessed by organisms, including man, in the kinds of environments in which such organisms exist.
Herbert Simon
During and after World War II, a large number of academic economists were exposed directly to business life, and had more or less extensive opportunities to observe how decisions were actually made in business organizations. Moreover, those who became active in the development of the new management science were faced with the necessity of developing decision-making procedures that could actually be applied in practical situations. Surely these trends would be conducive to moving the basic assumptions of economic rationality in the direction of greater realism.
Herbert Simon
The principle of bounded rationality [is] the capacity of the human mind for formulating and solving complex problems is very small compared with the size of the problems whose solution is required for objectively rational behavior in the real world - or even for a reasonable approximation to such objective rationality.
Herbert Simon
In the process of decision those alternatives are chosen which are considered to be appropriate means of reaching desired ends. Ends themselves, however, are often merely instrumental to more final objectives. We are thus led to the conception of a series, or hierarchy, of ends. Rationality has to do with the construction of means-ends chains of this kind.
Herbert Simon
It is impossible for the behavior of a single, isolated individual to reach a high degree of rationality. The number of alternatives he must explore is so great, the information he would need to evaluate them so vast that even an approximation to objective rationality is hard to conceive. Individual choice takes place in rationality is hard to conceive... Actual behavior falls short in at least three ways, of objective rationality:.
Herbert Simon
In these two essays [the papers of 1955 and 1956] the focus is upon ways of simplifying the choice problem to bring it within the power of human computation... The key to the simplification of the choice process in both cases is the replacement of the goal of maximizing with the goal of satisficing, of finding a course of action that is ‘good enough'. I have tried, in these two essays, to show why this substitution is an essential step in the application of the principle of bounded rationality.
Herbert Simon
The first consequence of the principle of bounded rationality is that the intended rationality of an actor requires him to construct a simplified model of the real situation in order to deal with it. He behaves rationally with respect to this model, and such behavior is not even approximately optimal with respect to the real world. To predict his behavior we must understand the way in which this simplified model is constructed, and its construction will certainly be related to his psychological properties as a perceiving, thinking, and learning animal.
Herbert Simon
Whereas reasons may, and usually do, figure among the proximate causes of belief, and thus play a part in both kinds of series (cognitive and causal), it is always possible to trace back the causal series to a point where every trace of rationality vanishes ; where we are left face to face with conditions of beliefs social, physiological, and physical- which, considered in themselves, are quite a-logical in their character. /.../ on any merely naturalistic hypothesis, the rational elements in the causal series lie always on the surface. Penetrate but a short way down, and they are found no more.
Arthur Balfour
Not only is it possible to devise complete models of the economy on hypotheses other than rationality, but in fact virtually every practical theory of macroeconomics is partly so based. The price- and wage- rigidity elements of Keynesian theory are hard to fit into a rational framework, though some valiant efforts have been made. ... But if the Keynesian model is a natural target of criticism by the upholders of universal rationality, it must be added that monetarism is no better. I know of no serious derivation of the demand for money from a rational optimization. ... The use of rationality in these arguments is ritualistic, not essential.
Kenneth Arrow
The encouragement of light-mindedness about traditional philosophical topics serves the same purposes as does the encouragement of light-mindedness about traditional theological topics. Like the rise of large market economies, the increase in literacy, the proliferation of artistic genres, and the insouciant pluralism of contemporary culture, such philosophical superficiality and light-mindedness helps along the disenchantment of the world. It helps make the world's inhabitants more pragmatic, more tolerant, more liberal, more receptive to the appeal of instrumental rationality.
Richard Rorty
Information impactedness is a derivative condition that arises mainly because of uncertainty and opportunism, though bounded rationality is involved as well. It exists when true underlying circumstances relevant to the transaction, or related set of transactions, are known to one or more parties but cannot be costlessly discerned by or displayed for others.
Oliver E. Williamson
Again and again he (Swami Vivekananda) would return upon the note of perfect rationality in his hero. Buddha was to him not only the greatest of Aryans but also 'the one absolutely sane man' that the world had ever seen. How he had refused worship! (...) How vast had been the freedom and humility of the Blessed One! (...) He alone was able to free religion entirely from the argument of the supernatural, and yet make it as binding in its force, and as living in its appeal, as it had ever been.
Sister Nivedita
Dotty: Archie says the Church is a monument to irrationality.
George: ... The National Gallery is a monument to irrationality! Every concert hall is a monument to irrationality! - and so is a nicely kept garden, or a lover's favour, or a home for stray dogs! You stupid woman, if rationality were the criterion for things being allowed to exist, the world would be one gigantic field of soya beans!
Tom Stoppard
Ecological rationality uses reason – rational reconstruction – to examine the behavior of individuals based on their experience and folk knowledge, who are ‘naïve' in their ability to apply constructivist tools to the decisions they make; to understand the emergent order in human cultures; to discover the possible intelligence embodied in the rules, norms and institutions of our cultural and biological heritage that are created from human interactions but not by deliberate human design. People follow rules without being able to articulate them, but they can be discovered.
Vernon L. Smith
The theory of games was first formalised by Von Neumann & Morgenstern (1953) in reference to human economic behaviour. Since that time, the theory has undergone extensive development... Sensibly enough, a central assumption of classical game theory is that the players will behave rationally, and according to some criterion of self-interest. Such an assumption would clearly be out of place in an evolutionary context. Instead, the criterion of rationality is replaced by that of population dynamics and stability, and the criterion of self-interest by Darwinian fitness.
John Maynard Smith
