Economics 512
Ariel Rubinstein 

 Advanced Economic Theory II
Modeling Bounded Rationality (
and other topics)

This course is taught by Eric Makin and me.  The topics we shall cover are distinct and unrelated.  This page only deals with "my" half of the course.

Place Princeton University:    200 Fischer
Period Fall 2000 (Nov-Dec)
Lecturer Ariel Rubinstein    
Date Mon Wed   09:00-10:30

Plan of the course

In the course we will go through several topics which fall under the heading of modeling bounded rationality.  I will heavily use my book "Modeling Bounded Rationality" (MIT PRESS 1988), denoted by MBR, as the basis but I will try to talk about other staff as much as I will be able to.

Date Topic MBR Readings


Similarity-Based Decision Making 2.1---2.4

Tversky, A. (1977)  "Features of Similarty", Psychology Review, 84, 327-352.

Rubinstein, A. (1988) Similarity and Decision-Making Under Risk, Journal of Economic Theory, 46, 145-153.

Rubinstein, A. (2000)  Is It "Economics and Psychology"? : The Case of Hyperbolic Discounting.  mimeo

Nov-13 Definablity of Preferences --- Rubinstein, A.  (2000) "Defineable Preferences: Another Example (Searching for a Boyfriend in a Foreign Town"


Case Based Decision Making --- Gilboa,I. and  D.Schmeidler Case_Based_Decisions  Oxford Univeristy Press (forthcoming)
Nov-22 Justification of Rules of Thumb --- Radner, R. and M.Rothschild "On the Alloaction of Efforts", JET 10 (1973), 358-376.


Imperfect Recall 4 Piccione, M. and A. Rubinstein On the Interpretation of Decision Problems with Imperfect Recall, with M.Piccione, Games and Economic Behavior 20 (1997), 3-24

Halpern, J. On Ambiguities in the Interpretation of Game Trees, Games and Economic Behavior 20 (1997), 66-96.



Games with Procedural Rationality 7 Osborne, M. and A. Rubinstein "Games with Procedurally Rational Players", American Economic Review 88 (1998), 834-847.

  Back to Ariel's Web page.