Table of Contents
Entropy, Volume 21, Issue 4 (April 2019) – 108 articles
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Cover Story (view full-size image) In contrast to perfect rationality, bounded rationality takes into account information processing [...] Read more. In contrast to perfect rationality, bounded rationality takes into account information processing limitations for decision-making and intelligent action. Here, we consider decision-making as a computationally costly process that reduces uncertainty. Based on a fundamental concept of probability transfers, which we call elementary computations, we promote a generalized notion of uncertainty that leads to a universal description of decision-making with limited resources. The resource limitations are generally expressed in terms of cost functions, which are monotonically increasing with respect to uncertainty reduction. Examples of cost functions include many known generalized entropies and divergences, with the Kullback–Leibler divergence as the only cost function that is additive under coarse-graining. View this paper