Herbert Simon’s renowned theory of bounded rationality is principally interested in cognitive constraints and environmental factors and influences which prevent people from thinking or behaving according to formal rationality. Simon’s theory has been expanded in numerous directions and taken up by various disciplines with an interest in how humans think and behave. This includes philosophy, psychology, neurocognitive sciences, economics, political science, sociology, management, and organization studies. The Routledge Handbook of Bounded Rationality draws together an international team of leading experts to survey the recent literature and the latest developments in these related fields. The chapters feature entries on key behavioural phenomena, including reasoning, judgement, decision making, uncertainty, risk, heuristics and biases, and fast and frugal heuristics. The text also examines current ideas such as fast and slow thinking, nudge, ecological rationality, evolutionary psychology, embodied cognition, and neurophilosophy. Overall, the volume serves to provide the most complete state-of-the-art collection on bounded rationality available. This book is essential reading for students and scholars of economics, psychology, neurocognitive sciences, political sciences, and philosophy.

This Element discusses contemporary theories of embodied cognition, including what has been termed the '4Es' (embodied, embedded, extended and enactive cognition). It examines diverse approaches to questions about the nature of the mind, the mind's relation to the brain, perceptual experience, mental representation, sense making, the role of the environment, and social cognition, and it considers the strengths and weaknesses of the theories in question. It contrasts embodied and enactive views with classic cognitivism, and discusses major criticisms and their possible resolutions. This element also provides a strong focus on enactive theory and the prospects for integrating enactive approaches with other embodied and extended theories, mediated through recent developments in predictive processing and the free energy principle. It concludes with a brief discussion of the practical applications of embodied cognition. This title is also available as Open Access on Cambridge Core.

How “nudges” by government can empower citizens without manipulating their preferences or exploiting their biases. We’re all familiar with the idea of “nudging”—using behavioral mechanisms to encourage people to make certain choices—popularized by Richard Thaler and Cass Sunstein in their bestselling 2008 book Nudge. This approach, also known as “libertarian paternalism,” goes beyond typical programs that simply provide information and incentives; nudges can range from automatic enrollment in a pension plan to flu-shot scheduling. In Nudging, Riccardo Viale explores the evolution of nudging and proposes new approaches that would empower citizens without manipulating them paternalistically. He shows that we can use the tools of the behavioral sciences without abandoning the principle of conscious decision-making. Viale discusses the work of Herbert Simon, Gerd Gigerenzer, Daniel Kahneman, and Amos Tversky that laid the foundation of behavioral economics, describes how policy makers have sought to help people avoid bad decisions, offers examples of effective nudging, and considers how to nudge the nudgers. How can we tell good nudges from bad nudges? Viale explains that good nudges help us avoid bias and encourage deliberate decision making; bad nudges, on the other hand, use bias to nudge people unconsciously into unintentional behaviors. Bad nudges attempt to compel decisions based on economic rationality. Good nudges encourage decisions based on a pragmatic, adaptive, ecological kind of rationality. Policy makers should take note.

While methodological individualism is a fundamental approach within the social sciences, it is often misunderstood. This highlights the need for a discursive and up-to-date reference work analyzing this approach’s classic arguments and assumptions in the light of contemporary issues in sociology, economics and philosophy. This two-volume handbook presents the first comprehensive overview of methodological individualism. Chapters discuss historical and contemporary debates surrounding this central approach within the social sciences, as well as cutting edge developments related to the individualist tradition with philosophical and scientific implications. Bringing together multiple contributions from the world’s leading experts on this important tradition of theorizing, this collective endeavor provides teachers, researchers and students in sociology, economics, and philosophy with a reliable and critical understanding of the founding principles, key thinkers and intellectual development of MI since the late 19th century.

This book discusses how scientific and other types of cognition make use of models, abduction, and explanatory reasoning in order to produce important or creative changes in theories and concepts. It includes revised contributions presented during the international conference on Model-Based Reasoning (MBR’015), held on June 25-27 in Sestri Levante, Italy. The book is divided into three main parts, the first of which focuses on models, reasoning and representation. It highlights key theoretical concepts from an applied perspective, addressing issues concerning information visualization, experimental methods and design. The second part goes a step further, examining abduction, problem solving and reasoning. The respective contributions analyze different types of reasoning, discussing various concepts of inference and creativity and their relationship with experimental data. In turn, the third part reports on a number of historical, epistemological and technological issues. By analyzing possible contradictions in modern research and describing representative case studies in experimental research, this part aims at fostering new discussions and stimulating new ideas. All in all, the book provides researchers and graduate students in the field of applied philosophy, epistemology, cognitive science and artificial intelligence alike with an authoritative snapshot of current theories and applications of model-based reasoning.

This open access textbook introduces and defines digital humanism from a diverse range of disciplines. Following the 2019 Vienna Manifesto, the book calls for a digital humanism that describes, analyzes, and, most importantly, influences the complex interplay of technology and humankind, for a better society and life, fully respecting universal human rights. The book is organized in three parts: Part I “Background” provides the multidisciplinary background needed to understand digital humanism in its philosophical, cultural, technological, historical, social, and economic dimensions. The goal is to present the necessary knowledge upon which an effective interdisciplinary discourse on digital humanism can be founded. Part II “Digital Humanism – a System’s View” focuses on an in-depth presentation and discussion of the main digital humanism concerns arising in current digital systems. The goal of this part is to make readers aware and sensitive to these issues, including e.g. the control and autonomy of AI systems, privacy and security, and the role of governance. Part III “Critical and Societal Issues of Digital Systems” delves into critical societal issues raised by advances of digital technologies. While the public debate in the past has often focused on them separately, especially when they became visible through sensational events the aim here is to shed light on the entire landscape and show their interconnected relationships. This includes issues such as AI and ethics, fairness and bias, privacy and surveillance, platform power and democracy. This textbook is intended for students, teachers, and policy makers interested in digital humanism. It is designed for stand-alone and for complementary courses in computer science, or curricula in science, engineering, humanities and social sciences. Each chapter includes questions for students and an annotated reading list to dive deeper into the associated chapter material. The book aims to provide readers with as wide an exposure as possible to digital advances and their consequences for humanity. It includes constructive ideas and approaches that seek to ensure that our collective digital future is determined through human agency.

Following rapid technological advancements that have taken place throughout the late twentieth and early twenty-first centuries, this intriguing book provides a dynamic agenda for the study of artificial intelligence (AI) within finance. Through an in-depth consideration of the use of AI, it utilizes case study examples to investigate AI’s effectiveness within investment and banking.

Honoring the life and work of Herbert Simon, this illuminating Companion provides an in-depth survey of one of the most prolific social scientists of our age. Mirroring the breadth of Simon’s studies, chapters analyze his contributions to artificial intelligence, economics, entrepreneurship, management, psychology and other fields.