Bounded Rationality Quotes

“The game theoretical analysis of the chain store game by backward induction is very easy and does not put any strain on the cognitive abilities of human beings. Even game theoretically untrained persons understand the backward induction argument without difficulty. Nevertheless, the conclusion is behaviorally unacceptable. The author was so worried about this contradiction that he felt three weeks of physical discomfort.”
― Reinhard Selten, Bounded Rationality: The Adaptive Toolbox