Bounded rationality and decision-making in complex systems

Vol. 36 No. 3 (2016)

Jul-Sep / 2016
Published March 1, 2020
PDF-Portuguese (Português (Brasil))
PDF-Portuguese (Português (Brasil))

How to Cite

Massaroli Melo, Tatiana, and José Ricardo Fucidji. 2016. “Bounded Rationality and Decision-Making in Complex Systems”. Brazilian Journal of Political Economy 36 (3):622-45. https://doi.org/10.1590/0101-31572016v36n03a09.

Bounded rationality and decision-making in complex systems

Tatiana Massaroli Melo
Professora do Departamento de Economia, Universidade Estadual Paulista, Faculdade de Ciência e Letras -UNESP/FCL , Araraquara.
José Ricardo Fucidji
Professores do Departamento de Economia, Universidade Estadual Paulista, Faculdade de Ciência e Letras -UNESP/FCL , Araraquara.
Brazilian Journal of Political Economy, Vol. 36 No. 3 (2016), Jul-Sep / 2016, Pages 622-645

Abstract

This article aims to present the behavioral model of bounded rationality proposed by Herbert Simon as a framework to analyze the process of decision-making of agents in complex systems, characterized by non-ergodicity and developing open trajectories. The article presents the notion of logically consistent choice and contrasts it with the axiomatic analysis of the neoclassical theory. It argues for the use of computer simulation models, like agent-based modeling (ABM) as a suitable tool for analyzing complex systems.

JEL Classification: B41; B52.


Keywords: bounded rationality complex systems simulation models