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Game theory can be used to analyze various situations, like playing chess, firms competing for business, or animals fighting over prey. Rationality is a core assumption of game theory: it is assumed that each player chooses rationally based on what is most beneficial from their point of view.
Rational choice modeling refers to the use of decision theory (the theory of rational choice) as a set of guidelines to help understand economic and social behavior. [ 1 ] [ 2 ] The theory tries to approximate, predict, or mathematically model human behavior by analyzing the behavior of a rational actor facing the same costs and benefits .
Rationalism has a philosophical history dating from antiquity.The analytical nature of much of philosophical enquiry, the awareness of apparently a priori domains of knowledge such as mathematics, combined with the emphasis of obtaining knowledge through the use of rational faculties (commonly rejecting, for example, direct revelation) have made rationalist themes very prevalent in the history ...
Bounded rationality attempts to address assumption points discussed within neoclassical economics theory during the 1950s. This theory assumes that the complex problem, the way in which the problem is presented, all alternative choices, and a utility function, are all provided to decision-makers in advance, [24] where this may not be realistic ...
The mythological Judgement of Paris required selecting from three incomparable alternatives (the goddesses shown).. Decision theory or the theory of rational choice is a branch of probability, economics, and analytic philosophy that uses the tools of expected utility and probability to model how individuals would behave rationally under uncertainty.
Ecological rationality challenges rational choice theory (RCT) as a normative account of rationality. According to rational choice theory, an action is considered rational if the action follows from preferences and expectations that satisfy a set of axioms, or principles. These principles are often justified based on consistency considerations ...
Habermas wants communicative rationality to be considered an everyday language according to "Communicative versus Strategic Rationality: Habermas Theory of Communicative Action and the Social Brain". He believes everyone should strive for the ability to be educated and able to defend their position on every topic.
[It] is the default theory, the theory that all discussants of rationality take for granted.”” [6]: 133 But he accepted the traditional proposition that instrumental rationality is incomplete because value-free. It only reveals value-free facts as means for pursuing fact-free self-interested utility.