search query: @author Conlisk, J. / total: 3
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| Author: | Conlisk, J. |
| Title: | Bounded rationality and market fluctuations |
| Journal: | Journal of Economic Behavior and Organization
1996 : MAR, VOL. 29:2, p. 233-250 |
| Index terms: | ECONOMICS TECHNOLOGY MARKETS |
| Language: | eng |
| Abstract: | In a model of a competitive market, each firm in each period faces a planning problem caused by random changes in circumstances. Due to bounded rationality, a firm is unable to compute , costlessly and exactly, its optimal output. Instead the firm approximates optimal output through a decision-making process called a "deliberation technology". This technology involves a rule of thumb, a costly deliberation mechanism, and a random deliberation error. The issue addressed by the model is how bounded rationality affects market fluctuations. |
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