Utility maximization and bounds on human information processing

Abstract

Utility maximization is a key element of a number of theoretical approaches to explaining human behavior. Among these approaches are rational analysis, ideal observer theory, and signal detection theory. While some examples of these approaches define the utility maximization problem with little reference to the bounds imposed by the organism, others start with, and emphasize approaches in which bounds imposed by the information processing architecture are considered as an explicit part of the utility maximization problem. These latter approaches are the topic of this issue of the journal.

Keywords: Bounds; Optimality; Rationality; Utility maximization.