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What is Rationality

Encyclopedia of Decision Making and Decision Support Technologies
The mental apparatus with which agents make decisions. Rationality in this context should be viewed as individual and situated, so that agents form heterogeneous communities.
Published in Chapter:
Policy Decision Support Through Social Simulation
Luis Antunes (GUESS/LabMAg/Universidade de Lisboa, Portugal), Ana Respício (Operations Research Center/GUESS/Universidade de Lisboa, Portugal), João Balsa (GUESS/LabMAg/Universidade de Lisboa, Portugal), and Helder Coelho (GUESS/LabMAg/Universidade de Lisboa, Portugal)
DOI: 10.4018/978-1-59904-843-7.ch080
Abstract
Public policies are concerned with the definition of guidelines that promote the achievement of specific goals by a society/community of citizens. Citizens share a common geographic space under a set of political governance rules and, at the same time, are subject to common cultural influences. On the other hand, citizens have differentiated behaviours due to social, economical, and educational aspects as well as due to their individual personalities. Public interest relates with individual interests held in common—the result of joining the individual goals for the community. However, community goals may conflict with individuals’ self-interests. The outcome of public policies is emergent from this very complex set of rules and social and individual behaviours. Decision support in such a context is a hard endeavour that should be founded in comprehensive exploration of the set of available designs for the individual actors and the collective mechanisms of the society. Social simulation is a field that can be useful in such a complex problem, since it draws from heterogeneous rationality theory into sociology, economics, and politics, having computational tools as aid to perform analysis of the conjectures and hypotheses put forward, allowing the direct observation of the consequences of the design options made. Through social simulation it is possible to gain insights about the constraints and rules that effectively allow for the design and deployment of policies. The exploration of this set of possible models for individual actors, their relationships, and collective outcome of their individual actions is crucial for effective and efficient decision support. Ever since the work of Simon (1955), it has been known that perfect rationality is not attainable in a useful and timely fashion. Social simulation provides an alternative approach to limited rationality, since it encompasses both observer and phenomenon in the experimentation cycle. Decision support systems can be enhanced with these exploratory components, which allow for the rehearsal of alternative scenarios, and to observe in silica the outcomes of different policy designs before deploying them in real settings.
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More Results
The Role of Individual Trust in E-Collaboration
A decision or situation is often called rational if it is in some sense optimal, and individuals are often called rational if they tend to act somehow optimally in pursuit of their goals.
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Transdisciplinarity: The Dynamic Future of Exemplary Leadership
This describes the logic behind any decision making.
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Data Gathering to Build and Validate Small-Scale Social Models for Simulation
An individual’s rationality is the process of decision that organizes its actions. Rationality has to be separated from perfect rationality , which is an economics concept defined by the ability to choose the best action in a situation. Rationality can be sub-optimal (especially in the case of bounded-rationality as defined by Simon). For an artificial agent, rationality is defined by an algorithm which associates information gathered by the agent to a choice of action.
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Peace in Economic Equilibrium: A Micro-Perspective
The ability to make logical decisions guided by cold calculations unaffected by emotions in order to maximize gains.
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Rational Decision Making, Dual Processes, and Framing: Current Thoughts and Perspectives
Behaving or making choices logically, consistently, and in a way that maximizes desirable outcomes.
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Rational and Intuitive Decision Making Style
The logical way of thinking or analysis.
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Games of Strategy
A player is said to be rational if he seeks to play in a manner which maximises his own payoff. It is often assumed that the rationality of all players is common knowledge.
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A Quality Assurance Approach to Healthcare: Implications for Information Systems
Best exemplified by the autonomous individual on whom neoclassical economic theory is built. Such an individual is rational because she has a complete set of preferences and acts in order to maximise her utility according to these preferences.
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A Quality Assurance Approach to Healthcare: Implications for Information Systems
Best exemplified by the autonomous individual on whom neoclassical economic theory is built. Such an individual is rational because she has a complete set of preferences and acts in order to maximise her utility according to these preferences.
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Virtual Work, Trust and Rationality
The ability to infer with relative certainty from existing or past behaviour and statements future behaviour and statements.
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Thinking Critically About the Fourth Industrial Revolution as a Wicked Problem
Accuracy and consistency of expressed beliefs as well as the degree to which choice reflects utility maximization.
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Ethical Rationality in AI: On the Prospect of Becoming a Full Ethical Agent
In ancient Greek philosophy known by the concept logos , which covers reason, speech, and argument. It expresses itself first and foremost in the human capacity of giving an account of the causes and the goals inherent in action. The concept is highly contested in modern philosophy and also associated with deduction and deliberation, and critical assessment and thinking.
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