Gigerenzer,G.
Todd,P.M.

This chapter focuses on bounded rationality as the study of heuristics that can exploit structures of their environments, we use the term “ecological rationality.” If one focuses only on cognitive limitations, one can hardly understand why cognition works as well as it does – just as looking at one blade alone does not explain how scissors cut. Simon's use of the term “cognitive limitations” (as opposed to neutral terms such as “cognitive heuristics”) is unfortunate because it has been taken to imply poor performance. However, equating limits with failure, and lack of limits with success, may underlie a deep misunderstanding about the consequences of omniscience. An unlimited memory, for instance, could be disastrous: The sheer mass of details stored could critically slow down and inhibit the retrieval of the few important experiences when they are needed. And too much information would impair the mind's ability to abstract, infer, and learn.

Gigerenzer, G., & Todd, P. M. (2008). Rationality the fast and frugal way: Introduction. In C. R. Plott & V. L. Smith (Eds.), Handbook of experimental economics results: Vol. 1 (Handbooks in Economics No. 28) (pp. 976-986). Amsterdam: North-Holland. (Full text)

Publication year	2008
Document type:	In book
Publication status:	Published
External URL:	http://library.mpib-berlin.mpg.de/ft/gg/GG_Rationality_2008.pdf View
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