Bounded rationality, value systems and time-inconsistency of preferences as rational foundations for the concept of trust

This paper intends to contribute to the (bounded rationality) foundations of trust. After reviewing the extant definitions, I establish the formal structure of situations involving trust. In that context, I examine the paradoxical situation of (calculative) trust in simple settings. Then I show how bounded rationality provides a rationale for a concept of trust that goes beyond that calculative notion. Value systems and possible inconsistency of time preferences are shown to be crucial elements.Trust; Bounded rationality; Value systems; Behavioral decision-making;

Beyond rationality: images as guide-lines to choice

In this paper I will discuss a representation of the decision-making process that is based on images production, and exploitation, in order to propose theoretical refinement of the link between decisional behaviour and mental images in economic contexts. To do so, I will start by shortly presenting Beach and Mitchell' s model (1987). I will then extend it to economics, by comparing its implications with those deriving from two more traditional approaches, both the neoclassical one and those recently from Simon' s bounded rationality theory: The most significant consequences of an image-based model appear to be: i) wider cognitive foundations for the decision process; ii) the need to extend the concept of rationality by enlarging its relationship with that of imagination; iii) a new and fuller "image" of the economic agent.

Belief, Credence, and Faith

In this article, I argue that faith’s going beyond the evidence need not compromise faith’s epistemic rationality. First, I explain how some of the recent literature on belief and credence points to a distinction between what I call B-evidence and C-evidence. Then, I apply this distinction to rational faith. I argue that if faith is more sensitive to B-evidence than to C-evidence, faith can go beyond the evidence and still be epistemically rational

Cursed Equilibrium Revisited

Empirical as well as experimental evidence strongly suggests that bidders in common value auctions typically do not conform to the requirements of perfect rationality. Eyster and Rabin (2005) develop a theory and an equilibrium concept - x-cursed equilibrium - for bounded rational bidding in common value auctions (among other situations), and also present some experimental evidence supporting the theory. This paper comments on these findings of an experiment conducted at the University of Bergen. In the experiment, participants often demonstrate behaviour that is beyond the bounds set by the x-cursed equilibrium theory, and I present an alternative theory that better explains the experimental findings.common value auctions; winner's curse; bounded rationality; experiments.

Lorentzian Dynamics and Factorization Beyond Rationality

We investigate the emergence of topological defect lines in the conformal Regge limit of two-dimensional conformal field theory. We explain how a local operator can be factorized into a holomorphic and an anti-holomorphic defect operator connected through a topological defect line, and discuss implications on Lorentzian dynamics including aspects of chaos. We derive a formula relating the infinite boost limit, which holographically encodes the "opacity" of bulk scattering, to the action of topological defect lines on local operators. Leveraging the unitary bound on the opacity and the positivity of fusion coefficients, we show that the spectral radii of a large class of topological defect lines are given by their loop expectation values. Factorization also gives a formula relating the local and defect operator algebras, and fusion categorical data. We then review factorization in rational conformal field theory from a defect perspective, and examine irrational theories. On the orbifold branch of the $c = 1$ free boson theory, we find a unified description for the topological defect lines through which the twist fields are factorized; at irrational points, the twist fields factorize through "non-compact" topological defect lines which exhibit continuous defect operator spectra. Along the way, we initiate the development of a formalism to characterize non-compact topological defect lines.Comment: 41+30 pages, 2 figures, 2 tables; v2: significant updates, enriched discussion on non-compact TDLs, extended scope of opacity bound, added TDL fusion rule in orbifold theory; v3: minor revision; v4: added Proposition

Lorentzian Dynamics and Factorization Beyond Rationality

We investigate the emergence of topological defect lines in the conformal Regge limit of two-dimensional conformal field theory. We explain how a local operator can be factorized into a holomorphic and an anti-holomorphic defect operator connected through a topological defect line, and discuss implications on Lorentzian dynamics including aspects of chaos. We derive a formula for the infinite boost limit, which holographically encodes the transparency/opacity of bulk scattering, in terms of the action of topological defect lines on local operators, and argue for a unitarity bound. Factorization also gives a formula relating the local and defect operator algebras and fusion categorical data. We review factorization in rational conformal field theory from a defect perspective, and examine irrational theories. On the orbifold branch of the $c = 1$ free boson theory, a dichotomy between rationality and irrationality is found regarding the factorization of the twist field

La transformación ética de la racionalidad económica en Amartya Sen. Una recuperación de Adam Smith

The aim of this article is to show the necessity of includying ethic elements in the economic rationality, that goes beyond the self-interest and egoism. From a critic of the homo oeconomicus and an exposition of the deficiencies of the egoist rationality, we see how the incorporation of ethic elements is a reflection of the real and rational behaviour of the individuals. Nowadays, Amartya Sen is the one who mainly proposes this theory, but it has in its basis the ethical recuperation of the Adam Smith's work. Finally, we show how the sympathy and commitment are two of the elements of this ethical rationality, but also the values like the confidence or loyalty, which goes beyond a simple economic model to become a theory of social justice

'A habitual disposition to the good': on reason, virtue and realism

Amidst the crisis of instrumental reason, a number of contemporary political philosophers including Jürgen Habermas have sought to rescue the project of a reasonable humanism from the twin threats of religious fundamentalism and secular naturalism. In his recent work, Habermas defends a post-metaphysical politics that aims to protect rationality against encroachment while also accommodating religious faith within the public sphere. This paper contends that Habermas’ post-metaphysical project fails to provide a robust alternative either to the double challenge of secular naturalism and religious fundamentalism or to the ruthless instrumentalism that underpins capitalism. By contrast with Habermas and also with the ‘new realism’ of contemporary political philosophers such as Raymond Geuss or Bernard Williams, realism in the tradition of Plato and Aristotle can defend reason against instrumental rationality and blind belief by integrating it with habit, feeling and even faith. Such metaphysical–political realism can help develop a politics of virtue that goes beyond communitarian thinking by emphasising plural modes of association (not merely ‘community’), substantive ties of sympathy and the importance of pursuing goodness and mutual flourishing

Beyond dogmatism: Rationality in theology and science

Beyond dogmatism: Rationality in theology and scienceThe justification of cognitive claims in theology can be dealt with adequately only if the epistemological issues of metaphorical reference, experiential adequacy and explanatory progress are seen as crucial problems for the more encompassing problem of rationality in theology. To claim some form of reality depiction the theologian will have to argue for a plausible theory of reference on the basis of interpreted religious experience. In this discussion important analogies between the rationality of theological theorizing and the rationality of science are revealed. Thusexplanatory progress in theology shows itself to be a form of inference to the best explanation, and the rationahty of both theology and science is therefore determined by certain epistemic values

Trust under bounded rationality: Competence, value systems, unselfishness and the development of virtue

Purpose: This paper analyses the foundations of trust in a context of bounded rationality to reach the conclusion that non-calculative trust is meaningful essentially because of bounded rationality, specifying what aspects of bounded rationality are relevant for this to happen. Design/methodology: Building on previous theoretical work we conceptually develop the reasoning involved to arrive deductively that bounded rationality provides a rationale for the concept of trust that goes beyond a calculative notion. Findings: We show that there are four reasons for trust to exist and that people assess probabilities to each in order to determine whether to trust a recipient, depending on each of the four. We also add to previous work and show how bounded rationality provides additional arguments to show how competence, value systems and unselfishness are necessary to underpin trust. We provide additional foundations to their three factors, focused on bounded rationality. We add the development of virtue as a crucial fourth aspect, which supports the argument that trust can be reinforced between people and developed through time. Originality/value: The concept of trust has been analyzed empirically, but it lacks some theoretical foundations to show under which assumptions trust is a requirement that goes beyond mere calculations, and can be developed or not through time. We also introduce how the concept of virtue has a major role in trust development