Purpose This paper aims to explore the relevance of bounded rationality to the practice of institutional investors in Malaysia. Understanding institutional investor behavior is important, as it can determine the asset prices and consequently the market behavior. Design/methodology/approach A set...

Purpose The purpose of this paper is to present three heuristics for choosing supplier selection criteria. By considering the balance between the expected relative effort and benefit of using different selection criteria, the heuristics suggest which criteria should be prioritized. The...

A crucial challenge for economists is figuring out how people interpret the world and form expectations that will likely influence their economic activity. Inflation, asset prices, exchange rates, investment, and consumption are just some of the economic variables that are largely explained by...

Purpose This study aims at redefining bounded rationality on the basis of a more socialized view of the individual. In doing so, it introduces “inquisitiveness” as a key disposition that some team members use to assemble and integrate knowledge when solving problems....

Purpose This study aims to demonstrate how agent-based simulation (ABS) may provide a computational testbed for mechanism design using concepts of bounded rationality (BR). ABS can be used to systematically derive and formalize different models of BR. This allows us to identify the cognitive...

Purpose The purpose of this paper is to explore the significance of bounded rationality for innovation research. It does so by expounding the structure and the assumptions of an agent-based model where boundedly rational actors engage in knowledge development and imitation. It is a conceptual...

Purpose The purpose of this paper is to apply agent-based modeling and simulation concepts in evaluating different approaches to solve ambulance-dispatching decision problems under bounded rationality. The paper investigates the effect of over-responding, i.e. dispatching ambulances even for...

Purpose The purpose of this editorial is to introduce the Special Issue “Agent-Based Models of Bounded Rationality” and to provide an overview of its rationale and main objectives. Design/methodology/approach After outlining the overall framework to justify the choice of agent-based modeling...