Bounded Rationality and Learning

Nyarko, Y., Woodford, M., & Yannelis, N. C. (1994). Bounded Rationality and Learning. Economic Theory, 4(6), 811-820.

Many have objected to the use of the Nash equilibrium (or more generally, Bayesian Nash equilibrium) concept in game theory, and similarly to the use of the rational expectations concept in the theory of competitive markets…

Read full article