1. Computationally Tractable Choice.
- Author
-
Camara, Modibo K.
- Subjects
DECISION theory ,HEURISTIC ,AXIOMS ,COGNITIVE ability ,EXPECTED utility - Abstract
I incorporate computational constraints into decision theory in order to capture how cognitive limitations affect behavior. I impose an axiom of computational tractability that only rules out behaviors that are thought to be fundamentally hard. I use this framework to better understand common behavioral heuristics: if choices are tractable and consistent with the expected utility axioms, then they are observationally equivalent to forms of choice bracketing. Then I show that a computationally-constrained decisionmaker can be objectively better off if she is willing to use heuristics that would not appear rational to an outside observer. The full paper is available at https://mkcamara.github.io/ctc.pdf. [ABSTRACT FROM AUTHOR]
- Published
- 2022
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