FEATURES OF EXPERIMENTALLY OBSERVED BOUNDED RATIONALITY

On the basis of experimental evidence reported in the literature the p aper draws conclusions about the bounded rationality exhibited by huma n economic behaviour. Among the topics discussed are presentation effe cts caused by superficial analysis, strategic reasoning and strategy c onstruction based on reciprocity and fairness, avoidance of circular c oncepts in step by step strategic reasoning, ex-post rationality and l earning direction theory, presence of both adaptive and analytic appro aches to repeated decision tasks, and the absence of quantitative expe ctations and optimization in typical repeated game strategies. (C) 199 8 Elsevier Science B.V. All rights reserved.