Please use this identifier to cite or link to this item:
Güth, Werner
Kliemt, Hartmut
Year of Publication: 
Series/Report no.: 
Discussion Papers, Interdisciplinary Research Project 373: Quantification and Simulation of Economic Processes 2001,12
Deriving advice that can in fact be utilized by boundedly rational decision makers is a central function of modeling choice making. We illustrate why this role is not being fulfilled well by standard models of full rationality and that theories of bounded rationality are needed not only for better predictions, but also for developing better advice. Our main point is that one cannot succeed here without studying how theories of bounded rationality causally influence the behavior of boundedly rational individuals. In view of such a causal role of theories we discuss how advice of a theory of boundedly rational behavior can become known, be followed among boundedly rational individuals and still be good advice.
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

Files in This Item:
136.19 kB

Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.