Complexity of games and bounded rationality
Hans W. Gottinger · Optimization · 1990
An attempt is made to propose a concept of limited rationality for choice junctions based on computability theory in computer science. Starting with the observation that it is possible to construct a machine simulating strategies of each individual in society, one machine for each individual's preference structure, we identify internal states of this machine with strategies or strategic preferences. Inputs are possible actions of other agents in society thus society is effectively operating as a game generated by machines. The main result states that effective realization of game strategies bound by the “complexity of computing machines'.