Inductive Reasoning and Bounded Rationality.

Arthur, W. B. (1994). Inductive Reasoning and Bounded Rationality. American Economic Review, 84(2), 406-411.

Type

Journal article

Intellectual base

Primary research

Year

1994

Link

https://www.jstor.org/stable/2117868

Cited from

sociology_anthropology

Cited by

1 citation across 1 artifact.

Each citation links to the sentence it supports in the citing article.

Primes

• Self-Defeating Prediction
  • Minority games and El Farol. A shared prediction rule selects the same action for everyone, defeating any prediction that depended on heterogeneous response.

    This sourceIntroduces the El Farol Bar problem, showing that a shared deterministic prediction rule is self-defeating and that heterogeneous (randomized/inductive) expectations are required to sustain an equilibrium.

Verification

This reference passed the adversarial substantiation pipeline: it was checked to exist and to support the claim it is attached to. See how references were verified.

Registry ID ref:7dc256599384 · see in the full table