Foundations of Boundedly Rational Choice and Satisficing Decisions

Velupillai, K. Vela

doi:10.1155/2010/798030

Cited by 24 publications

(15 citation statements)

References 8 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Many scholars have attempted to formulate mathematical models for explaining the rational process of rational decision making (Velupillai, 2010). In reality, however, the net benefit calculation that occurs in an offender's mind is much more subtle and complex than any mathematical model can fully explain, as it involves weighing different factors subjectively based on his or her perception of the realities of the world he or she lives in.…”

Section: Behavioral Side Of Corruption In Indonesiamentioning

confidence: 99%

To be corrupt or not to be corrupt

Prabowo

2014

Journal of Money Laundering Control

View full text Add to dashboard Cite

If you would like to write for this, or any other Emerald publication, then please use our Emerald for Authors service information about how to choose which publication to write for and submission guidelines are available for all. Please visit www.emeraldinsight.com/authors for more information. About Emerald www.emeraldinsight.comEmerald is a global publisher linking research and practice to the benefit of society. The company manages a portfolio of more than 290 journals and over 2,350 books and book series volumes, as well as providing an extensive range of online products and additional customer resources and services.Emerald is both COUNTER 4 and TRANSFER compliant. The organization is a partner of the Committee on Publication Ethics (COPE) and also works with Portico and the LOCKSS initiative for digital archive preservation. AbstractPurpose -The purpose of this paper, which is based on author's study, is to shed light on the behavioral elements of corruption in particular the decision-making process undertaken by potential offenders to construct a solid basis for effective corruption eradication strategy in Indonesia. Design/methodology/approach -This study examines corruption cases in Indonesia in the past two years which have been investigated by the Indonesian Corruption Eradication Commission as well as relevant literature on corruption to gain a better understanding of corruption offenders' behavior. Findings -The author establishes that by looking at the behavioral side of corruption we may gain more understanding on potential offenders' way of thinking as a reference in dealing with corruption. The discussions in this paper suggest that when potential offenders are exposed to pressure/motivation, opportunity and rationalization to commit corruption, they will (consciously or subconsciously) assess all the perceived benefits and costs before deciding to commit (or not to commit) corruption. Understanding the mechanics by which potential offenders decide to engage (or not to engage) in corruption will provide government and decision makers with a solid basis for formulating an effective corruption eradication strategy. Research limitations/implications -This study utilizes only secondary data sources to build its analysis on the perceived benefits and costs of engaging in corrupt practices. For future studies, primary sources, such as incarcerated corruption offenders, will offer a more accurate view of the actual decision-making process behind corrupt practices. Practical implications -This paper contributes to the development of effective corruption eradication strategy in Indonesia by introducing the fraud decision scale as a framework by which appropriate measures will be devised so as to yield the intended results. Originality/value -Instead of taking the more popular legal or political standpoint, this paper takes an unconventional view of assessing corruption problem from the behavioral perspective.

show abstract

Section: Behavioral Side Of Corruption In Indonesiamentioning

confidence: 99%

To be corrupt or not to be corrupt

Prabowo

2014

Journal of Money Laundering Control

View full text Add to dashboard Cite

show abstract

“…All together the assumptions describe a requirement of Simon's satisficing problem solution. Bounded rationality produces satisficing solutions (Simon, 1955;Velupillai, 2010) or, as Simon initially named them, satisfactory (Simon, 1955, p. 104).…”

Section: Decision Making Modesmentioning

confidence: 99%

Evidence delivering management accounting

Czarnecki

2013

ZTR

View full text Add to dashboard Cite

“…14 Surprisingly, there has been very little discussions on bounded rationality within a computability framework. Exceptions include Velupillai (2000) and Vellupilai (2010). Both works advanced several important points.…”

Section: Bounded Rationality: Empirical and Theoretical Developmentsmentioning

confidence: 99%

“…heuristics involving learning to exploit some systematic feature of the environment. The prevalence of bounded rationality could also be interpreted to mean that the type of 'Olympian rationality' commonly assumed in many mainstream economics models is indeed a special case (as Vellupilai (2010) has argued) i.e. precisely because the spectrum encompassing the collection of choice procedures are obviously less than that associated with maximal Kolgomorov complexity.…”

Section: Bounded Rationality and The Environmentmentioning

confidence: 99%

Bounded Rationality and the Emergence of Simplicity Amidst Complexity

Lee

2012

Nonlinearity, Complexity and Randomness in Economics

View full text Add to dashboard Cite

The purpose of this essay is to explore the relationship between the simple and the complex in economics by anchoring our analysis on bounded rationality. Much of the conventional literature focuses on 'un-bounded rationality' of the rationality-as-consistency variety. Theorizing of bounded rationality tends to assume that the problem to be solved is independent of the nature of bounded rationality. Following the insights from the works of Herbert Simon and contributions from outside economics, both bounded rationality and the environment are inextricably linked. The boundaries between bounded rationality and its environment can shift. The form in which bounded rationality is found depends on the complexity of the environment. Furthermore, if local interactions between bounded rational agents result in the formation of hierarchies -the complexity of the collective system will change. Whether this will occur depends on the nature of bounded rationality at the individual level. AbstractThe purpose of this essay to explore the relationships between the simple and the complex in economics by anchoring our analysis on bounded rationality. Much of the conventional literature focuses on "un-bounded rationality" of the rationality-as-consistency variety. Theorizing of bounded rationality tends to assume that the problem to be solved is independent of the nature of bounded rationality. Following the insights from the works of Herbert Simon and contributions from outside economics , both bounded rationality and the environment are inextricably linked. The boundaries between bounded rationality and its environment can shift. The form in which bounded rationality is found depends on the complexity of the environment. Furthermore, if local interactions between bounded-rational agents result in the formation of hierarchies -the complexity of the collective system will change. Whether this will occur depends on the nature of bounded rationality at the individual level.

show abstract

Foundations of Boundedly Rational Choice and Satisficing Decisions

Cited by 24 publications

References 8 publications

To be corrupt or not to be corrupt

To be corrupt or not to be corrupt

Evidence delivering management accounting

Bounded Rationality and the Emergence of Simplicity Amidst Complexity

Contact Info

Product

Resources

About