Bounded Rationality and Directed Cognition

摘要: This paper proposes a psychological bounded rationality algorithm that uses partially myopic option value calculations to allocate scarce cognitive resources. The model can be operational'ized even when decision problems require an arbitrarily large number of state variables. We evaluate the model using experimental data on a class of complex one'person games with full information. The model explains the experimental data better than the rational actor model with zero cognition costs.