Boundedly Rational versus Optimization-Based Models of Strategic Thinking and Learning in Games
Crawford, Vincent P. 2013. "Boundedly Rational versus Optimization-Based Models of Strategic Thinking and Learning in Games."
Journal of Economic Literature,
Harstad and Seltenâ€™s article in this forum performs a valuable service by highlighting
the dominance of optimization-based models over boundedly rational models in
modern microeconomics, and questioning whether optimization-based models are
a better way forward than boundedly rational models. This article complements
Rabinâ€™s response to Harstad and Selten, focusing on modeling strategic behavior.
I consider Harstad and Seltenâ€™s examples and proposed boundedly rational
models in the light of modern behavioral economics and behavioral game theory,
commenting on the challenges that remain and the most promising ways forward.
Article Full-Text Access
Crawford, Vincent P. (U Oxford and U CA, San Diego)
B40: Economic Methodology: General
C72: Noncooperative Games
D01: Microeconomic Behavior: Underlying Principles
D03: Behavioral Economics: Underlying Principles
D80: Information, Knowledge, and Uncertainty: General