Complexity Theoretic Bounded Rationality and Satisficing

Abstract

Formally, the orthodox rational agent’s ‘Olympian’ choices ([9], p. 19) appear to be made in a static framework. However, a formalization of consistent choice, underpinned by computability, suggests satisficing in a boundedly rational framework is not only more general than the model of ‘Olympian’ rationality; it is also consistently dynamic. This kind of naturally process-oriented approach to the formalization of consistent choice can be interpreted and encapsulated by varieties of frameworks of theories of complexity.

A title that might be more appropriate would have been: Boundedly Rational Choice and Satisficing Decisions — Computable Foundations for a Complexity Theoretic Approach. This, while reflecting the main thrust of the contents of the paper, and its attempt at aiming to meet the stated scope of the event, is obviously too long. Hence the truncated, if also slightly less informative, title. Most importantly, however, the longer title would have signalled, explicitly, the way I am trying to meet Massimo Salzano’s abiding interests in the triptych of Bounded Rationality, Satisficing and Complexity — the latter, in particular, in all its many variations and formal splendour. I think it is my own long-standing interest and work in computable economics that first brought them to Massimo’s attention. Thus, the foundations in the title refers to those provided by computable economics. But I want to emphasize that computable here refers to both recursion theoretic and constructive aspects of that concept. This shift in trying to be more inclusive came about by my increasing discomfort with the strictures of the Church-Turing Thesis — a stricture that is nonbinding on the Brouwer-Bishop variant of constructive mathematics. My own adherence is to this variant of constructive mathematics, with a distinct slant towards the former, for its philosophical basis in intuitionism. I am confident Massimo Salzano would have approved my stance.