Bounded Rationality Modeling
Marketing Letters, Vol. 43, pp. 197-200, 2003
16 Pages Posted: 23 Nov 2008
Date Written: 2003
This paper deals with bounded rationality as a way to describe behavior and focuses on the question of how to build such boundedly rational models. The first part is a discussion of the reasons why such models are needed and on the situations in which they can be regarded as more particularly useful. The second part examines three strategies of research towards bounded rationality modeling which have emerged in the last ten years and weights them. The concluding remarks offer a first link between the respective typologies of strategies and of situations and calls for additional experimental work by marketing scientists and economists together.
Keywords: Decision-making, consumer behavior, procedural rationality, choice functionals, adaptive behavior
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