(1) Leonard N. Stern School of Business, New York University, 44 West 4 Street, New York, 10012-1126, USA
Abstract:
The paper discusses bounded and unbounded rationality in purposeful complex adaptive systems (PCAS) modeled by the Evolutionary Systems Design (ESD) framework. Due to Herbert Simon, bounded rationality is the rationality of cognition. Unbounded rationality is the generalized rationality of connectedness represented mathematically, of spirituality, and of right decision/negotiation. Operational procedures for defining/solving and validating a problem in group decision and negotiation under unbounded rationality are discussed. With human PCAS as a focus, the paper more generally considers rationality in multiagent systems with natural and/or artificial agents.