Bounded rationality in decision-making : how cognitive shortcuts and professional values may interfere with market-based regulation / Helle Nielsen
- Nielsen, Helle (Helle Ørsted)
- Manchester ; New York : Manchester University Press, 2009.
- Physical Description:
- x, 246 pages : illustrations ; 23 cm.
- Issues in environmental politics
- Theoretical approaches to rational behaviour -- A positive model of bounded rationality : from the theoretical approaches to analytical model -- Research design -- The empirical setting : agriculture and environmental regulation -- Fertiliser application around optimal norms : effect of decision environment -- Information shortcuts and rules of thumb : how farmers make decisions on fertilisers -- Optimising or satisficing : when and what.
- "Challenging standard economic models, this book shows how farmers tend to use cognitive shortcuts in their decision-making and how their professional pride frequently outweighs profit considerations. This indicates that environmental regulation based on economic incentives may not be as effective as some economic theorists and ex ante policy analysts maintain." "Rather than assuming that regulations respond to incentive-based policies, this book examines the ways in which they do. Bounded rationality in decision-making has typically been studied in a laboratory setting, but this book uses original empirical research to demonstrate how bounded rationality plays out in the real world, examining the responses of Danish farmers to fertiliser regulation and their decision-making processes." "The book contains a comprehensive and comparative review of rational and bounded rationlity models of behaviour. It explores concepts developed in books such as Herbert Simon's Administrative behaviour and A behavioural theory of the firm by Cyert and March, and reviews their implications for economic theory and envionmental policy. Empirically, the book examines the responses of farmers in Denmark to fertiliser regulation and the decision processes they go through regarding fertiliser levels. Fertiliser regulation builds on economically optimal levels and therefore offers a rational standard against which to compare actual decisions on fertiliser levels. This lends the study a significant methodological advantage, and it represents a novel approach to the study of rationality. It combines quantitative analysis of fertiliser practices among Danish farmers over more than ten years with qualitative interviews. These are compared with analysis of other types of decisions showing that decision processes and the weight assigned to economic considerations vary by type of decisions." "The book will be of interest to a broad range of scholars within public policy, public administration, political science, behavioural economics and sociology"--BOOK JACKET.
- 9780719079924 (hbk.) and 0719079926 (hbk.)
- Bibliography Note:
- Includes bibliographical references (pages -241) and index.
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