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  • Published: 30 August 2022
  • ISBN: 9780262543705
  • Imprint: MIT Press Academic
  • Format: Paperback
  • Pages: 552
  • RRP: $120.00

Bounded Rationality

Heuristics, Judgment, and Public Policy



Two leaders in the field explore the foundations of bounded rationality and its effects on choices by individuals, firms, and the government.

Bounded rationality recognizes that human behavior departs from the perfect rationality assumed by neoclassical economics. In this book, Sanjit Dhami and Cass R. Sunstein explore the foundations of bounded rationality and consider the implications of this approach for public policy and law, in particular for questions about choice, welfare, and freedom. The authors, both recognized as experts in the field, cover a wide range of empirical findings and assess theoretical work that attempts to explain those findings. Their presentation is comprehensive, coherent, and lucid, with even the most technical material explained accessibly. They not only offer observations and commentary on the existing literature but also explore new insights, ideas, and connections.

After examining the traditional neoclassical framework, which they refer to as the Bayesian rationality approach (BRA), and its empirical issues, Dhami and Sunstein offer a detailed account of bounded rationality and how it can be incorporated into the social and behavioral sciences. They also discuss a set of models of heuristics-based choice and the philosophical foundations of behavioral economics. Finally, they examine libertarian paternalism and its strategies of “nudges.”

  • Published: 30 August 2022
  • ISBN: 9780262543705
  • Imprint: MIT Press Academic
  • Format: Paperback
  • Pages: 552
  • RRP: $120.00

About the authors

Cass R Sunstein

Cass R. Sunstein specializes in constitutional law, regulatory policy, and economic analysis of law. In the academic world, he is by far the most cited law professor in the United States. He has also written for many popular newspapers and magazines, including The New York Times, The Washington Post, The Los Angeles Times, The Boston Globe, The Chicago Tribune, The American Prospect, Time, Harpers, and The New Republic. He has also appeared on many national television and radio shows, including Nightline, Fox News, the ABC Evening News, the NBC Evening News, 20/20, the News Hour, The O'Reilly Factor, and Fresh Air.

Sunstein graduated in 1975 from Harvard College and in 1978 from Harvard Law School magna cum laude. After graduation, he clerked for Justice Thurgood Marshall of the U.S. Supreme Court. Before joining the faculty of the University of Chicago Law School, he worked as an attorney-advisor in the Office of the Legal Counsel of the U.S. Department of Justice. Mr. Sunstein has testified before congressional committees on many subjects, and he has been involved in constitution-making and law reform activities in a number of nations, including Ukraine, Poland, China, South Africa, and Russia. A member of the American Academy of Arts and Sciences, Mr. Sunstein has been Samuel Rubin Visiting Professor of Law at Columbia, visiting professor of law at Harvard, vice-chair of the ABA Committee on Separation of Powers and Governmental Organizations, chair of the Administrative Law Section of the Association of American Law Schools, a member of the ABA Committee on the future of the FTC, and a member of the President's Advisory Committee on the Public Service Obligations of Digital Television Broadcasters.

Mr. Sunstein is author of many articles and a number of books, including Republic.com (2001), Risk and Reason (2002), The Cost-Benefit State (2002), Why Societies Need Dissent (2003), The Second Bill of Rights (2004), Laws of Fear: Beyond the Precautionary Principle (2005), and Worst-Case Scenarios (2007). He is now working on various projects involving the relationship between law and human behavior

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