Friday, 5 November 2010

Boundedly Rational Agents

To regard a social order compounded by boundedly rational agents as unstable is an assertion that is very close to be a case of fallacy of composition. The Hayek’s essay “Economics and Knowledge” (1937) shows how the coordination of the individual plans of agents possessing just bits of information can provide of a system satisfactorily responsive to the changes in the environment. Resembling Mandeville’s Fable of the Bees, boundedly rational agents may bring a rational order –or moreover, the rationality of that order rests on the bounded rationality of its agents.

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