The Credible Modelling of Economic Agents with Limited Rationality

  • Bruce Edmonds
  • Scott Moss


A model of bounded rationality suitable for modelling economic agents is proposed. Agents’ beliefs are modeled as descriptions of tentative models. These models are inductively found by a limited incremental search based on the current model and by combinations of past models from a space restricted by the imposition of a priori beliefs. The action of the agent is then decided by a search of the goal space where it intersects the model space (if any).


Model Description Economic Agent Limited Rationality Reaction Function Policy Modelling 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.


Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.


  1. Axelrod, R., The Evolution of co-operation, London: Penguin (1990).Google Scholar
  2. Brooks, R.A. “Intelligence without representation”. Artificial Intelligence 47 (1991):139–159.CrossRefGoogle Scholar
  3. Davis, R. “Teiresias: Applications of meta-level knowledge,” in part 2 of R. Davis and D.B. Lenat Knowledge-based Systems in Artificial Intelligence, New York: McGraw-Hill (1982).Google Scholar
  4. Dixon, H.D. “An algorithm for computing equilibrium supply and reaction functions”, mimeo, University of York (1992).Google Scholar
  5. Dixon, H.D., S. Moss and S. Wallis “Axelrod meets Cournot: Oligopoly and the Evolutionary Metaphor Part 1,” Centre for Policy Modelling Report 06, Centre for Policy Modelling, Manchester (1995).Google Scholar
  6. Fisher and Wooldridge. “A Decision Procedure for a Temporal Belief Logic,” Lecture Notes in Artificial Intelligence, 827, Heidelberg: Springer-Verlag (1993).Google Scholar
  7. Marimon, R. and E. McGrattan “On Adaptive Learning in Strategic Games,” Economics Working Paper, Universitat Pompeu Fabra (1992).Google Scholar
  8. Masuch, M. and Z. Huang “A Logical Deconstruction of Organizational Action: Formalizing Thompson’s ‘Organizations in Action’ in to a Multi-Agent Action Logic,” CCSOM Working Paper (1994):94–120.Google Scholar
  9. Moss, S. “The Economics of Positive Methodology,” in R. Blackwell, J.Chatta and E. Nell (eds.) Economics as Worldly Philosophy, Basingstoke: Macmillan (1993).Google Scholar
  10. Moss, S. and B. Edmonds “Economic Methodology and Computability: Implications for the Evaluation of Econometric Forecasts,” CPM Report 01, Centre for Policy Modelling, Manchester (1994).Google Scholar
  11. Moss, S., H.D. Dixon and S. Wallis “Evaluating Competitive Strategies,” International Journal of Intelligent Systems in Accounting, Finance and Management (1995).Google Scholar
  12. Simon, H.A. “Theories of Bounded Rationality,” in: C.B. McGuire and R. Radner (eds.) Decision and Organization,. Amsterdam: North-Holland (1972).Google Scholar
  13. Simon, H.A. Economics, Bounded Rationality and the Cognitive Revolution. Edward Elgar: Brookfield, Vermont (1992).Google Scholar
  14. Wellman, M.P. “A Market Orientated Programming Environment and its Application to Distributed Multicommodity Flow Problems,” Journal of Artificial Intelligence Research 1 (1993):1–23.MATHGoogle Scholar
  15. Wallis, S and S. Moss, “Efficient Forward Chaining for Declarative Rules in a Multi-Agent Modelling Language,” CPM Report 04, Centre for Policy Modelling, Manchester (1994).Google Scholar

Copyright information

© Kluwer Academic Publishers 1996

Authors and Affiliations

  • Bruce Edmonds
  • Scott Moss
    • 1
  1. 1.Centre for Policy ModellingManchester Metropolitan UniversityManchesterUK

Personalised recommendations