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. . . but our brain can’t understand the picture

Hayek already wrote in The Sensory Order (1952) that “An apparatus of classification cannot explain anything more complex than itself” and that “The whole idea of the mind explaining itself is a logical contradiction’’. Hayek takes this incompleteness — the constitutional inability of mind to explain itself — to be a generalized case of Gödel’s Incompleteness Theorem. See…

Multiple Equilibria, Bounded Rationality, and the Indeterminacy of Economic Outcomes: Closing the System with Institutional Parameters

The tenth in a series of excerpts from Minds, Models and Milieux: Commemorating the Centennial of the Birth of Herbert Simon. Morris Altman A critical point made by behavioral economists from a wide set of methodological perspectives is that individuals typically do not make decisions that are consistent with conventional economic theoretical norms of rational…

Mr. Toole

Surprisingly enough, I hadn’t come across this before. Apparently the playwright was a student of Toole’s. If you are a Confederacy fan catch the show here. a confederacy of duncesJohn Kennedy Toolenew orleansVivian Neuwirth

From Bounded Rationality to Expertise

The ninth in a series of excerpts from Minds, Models and Milieux: Commemorating the Centennial of the Birth of Herbert Simon. Fernand Gobet Introduction Historically, a pervasive assumption in the social sciences, in particular economics, is that humans are perfect rational agents. Having full access to information and enjoying unlimited computational resources, they maximise utility when…