Micro Theory Seminar - Modibo Camara, University of Chicago

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Location: 3060F Jenkins Nanovic Halls

Interested parties are welcome to attend.

Presentation Title: "Computationally Tractable Choice"

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 decision maker can be objectively better off if she is willing to use heuristics that would not appear rational to an outside observer.

 

Contact Maciej Kotowski for information.