-consistent expectations. This implicitly assumes unrealistic cognitive abilities on the part of economic decision makers. The relevant … question, however, is not whether the assumption can be literally correct, but how much it would matter to model decision … problems such as chess or go, in which decision makers look ahead only a finite distance into the future, and use a value …

Welfare Economics. A key theme of Cognitive Economics is finite cognition (often misleadingly called “bounded rationality …

the cost of generating the information used to make a decision through a dynamic evidence accumulation process. We …

Decisions take time, and the time taken to reach a decision is likely to be informative about the cost of more precise …

Does bounded rationality make paternalism more attractive? This Essay argues that errors will be larger when suppliers … comparative statics suggest that bounded rationality will often increase the costs of government decisionmaking relative to …

We conduct a laboratory experiment to shed light on the cognitive limitations that may affect the way decision makers …