THE TAPMI-MPI-SOTON WINTER SCHOOL’S GOAL:

The MPIB conducts a summer institute on bounded rationality every year at Berlin, participated by scholars and students from around the world. In collaboration with TAPMI, MPIB is bringing the concept to India with a Winter School on Bounded Rationality in the second week of January 2017. This is to educate and encourage stronger participation by Asian/Indian scholars and students. The school aims to provide an interdisciplinary platform for sharing knowledge, discussing the importance and applications of simple solutions to complex problems, and fostering research collaborations between participating scholars and students. Participants will be introduced to research from a diverse set of fields organized under the umbrella of bounded rationality. This winter School will organise many activities—such as seminars, talks, panel discussions, workshops, poster sessions, and social events will take place—and allowing participants to learn and develop new ideas in their respective research fields facilitated by frequent interactions with the teaching faculty members.

BOUNDED RATIONALITY

What do we mean by bounded rationality? In short, it refers to how the mind reasons under limited time, information, and computational power. However, the logic and probability theory assume perfect knowledge about the relevant features of the world, whereas bounded rationality seeks to specify simple step-by-step rules (heuristics) that function well in an uncertain and complex world. [More about bounded rationality]

Two terms closely related to bounded rationality are: “social rationality” and “ecological rationality”.

SOCIAL RATIONALITY

Human problem-solving may also occur in interaction with others. Decisions may have an interactive nature and what is deemed irrational in isolation might be rational in interaction with others. The study of social rationality examines how judgment and decision processes can adapt to these interconnected social environments. This often involves going out of the lab into the field to study problems that occur whenever multiple people in medicine, law, business, and politics have to make decisions. [More about social rationalty]

ECOLOGICAL RATIONALITY

Another essential concept, “ecological rationality”, refers to the idea that decision mechanisms are adapted to the ecology of the decision maker. The ecology refers to the informational structure within the environment in which the mind makes a decision. There need not be one all-purpose strategy, but rather a set of decision strategies that are specifically adapted to certain types of ecologies. Therefore, the study of ecological rationality explores how these mechanisms exploit the structure of the information in the environment. Through evolution, learning, and culture, a repertoire of specialized cognitive mechanisms (metaphorically known as the "adaptive toolbox") has emerged. These fast and frugal heuristics generally consist of three building blocks: search rule, stopping rule, and decision making. [More about ecological rationality]