DocumentCode :
3772268
Title :
What Automaton Model Captures Decision Making? The Necessity of Behavioral Complexity
Author :
Stephan Schosser;Bodo Vogt
Author_Institution :
Dept. of Empirical Econ., Otto-von-Guericke Univ. Magdeburg, Magdeburg, Germany
fYear :
2015
Firstpage :
229
Lastpage :
235
Abstract :
When investigating bounded rationality, economists favor automaton models of Chomsky Type-3 as a model for human decision making over other concepts. Chomsky Type-3 automaton models are especially suited for (repetitions of) decision problems with limited strategy sets and players. In this paper, we discuss the limitations of different automaton models when capturing human decision making. Thereby, we give an overview over different economic decision problems, with a focus on individual decision making and game-theory. We argue that lower Chomsky types than Type-3 are necessary to model human decision making and that extensions of existing automaton models are necessary to capture the specifics of human decision making. Corresponding models are necessary to make progress in economic modeling as most existing models neglect the bounded capabilities of humans and therefore fail to make solid predictions.
Keywords :
"Automata","Complexity theory","Economics","Computational modeling","Decision making","Games","Footwear"
Publisher :
ieee
Conference_Titel :
Smart City/SocialCom/SustainCom (SmartCity), 2015 IEEE International Conference on
Type :
conf
DOI :
10.1109/SmartCity.2015.76
Filename :
7463730
Link To Document :
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