Reasoning the fast and frugal way: Models of bounded rationality.

Gerd Gigerenzer, Daniel G. Goldstein

Psychological Review · 1996 · 534 citations · 35 references

Concepts

TL;DR

Humans and animals make inferences under limited time and knowledge, whereas many rational models assume unlimited resources. The authors aim to develop fast and frugal algorithms grounded in one‑reason decision making that satisfy Simon’s notion of satisficing. They simulate a competition between the Take The Best algorithm and rational procedures, showing that the fast and frugal methods neither look up nor integrate all information. Take The Best matched or outperformed all competitors in inferential speed and accuracy, demonstrating that successful cognition need not conform to classical rational norms.

Abstract

Humans and animals make inferences about the world under limited time and knowledge. In contrast, many models of rational inference treat the mind as a Laplacean Demon, equipped with unlimited time, knowledge, and computational might. Following H. Simon's notion of satisfying, the authors have proposed a family of algorithms based on a simple psychological mechanism: one-reason decision making. These fast and frugal algorithms violate fundamental tenets of classical rationality: They neither look up nor integrate all information. By computer simulation, the authors held a competition between the satisfying "Take The Best" algorithm and various "rational" inference procedures (e.g., multiple regression). The Take The Best algorithm matched or outperformed all competitors in inferential speed and accuracy. This result in an existence proof that cognitive mechanisms capable of successful performance in the real world do not need to satisfy the classical norms of rational inference.

References

35