Bounded Rationality and Adaptive Agents in Economic Modeling

Traditional economic theory sees human economic decisions as rational choices of action to achieve maximum utility. However, economic reality shows that people often behave in ways different from that ideal: actions are not always determined rationally; often they are influenced by other factors, such as chance and tradition. In order to describe the behaviour of economic agents in the real world, we take irrationality and adaptation into account: we present work in progress on a market simulation that shows the effects of partly irrational and adaptive consumer buying decisions on the course of action of entrepreneurs.