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Computable Economics$
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K. Velupillai

Print publication date: 2000

Print ISBN-13: 9780198295273

Published to Oxford Scholarship Online: November 2003

DOI: 10.1093/0198295278.001.0001

Adaptive Behavior

Chapter:
(p. 44 ) 4 Adaptive Behavior
Source:
Computable Economics
Author(s):

Kumaraswamy Velupillai

Publisher:
Oxford University Press
DOI:10.1093/0198295278.003.0004

Two counter‐intuitive points are made in this chapter. The first is the claim, demonstrated formally, that orthodox definitions of rationality, when viewed in a dynamic context, turn out to be approximations to adaptively rational behaviour. The second, related point – illustrated with a formal example – is that bounded rationality is not an approximation of any sort to the full rationality of standard theory; rather, it is the other way about.

Keywords:   adaptive behaviour, bounded rationality, computation universality, decision rules, neural nets

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