Human Decision-Making under Limited Time

Understand

Subjective expected utility theory assumes that decision-makers possess unlimited computational resources to reason about their choices; however, virtually all decisions in everyday life are made under resource constraints - i.e.

• decision-makers are bounded in their rationality.
• Here we experimentally tested the predictions made by a formalization of bounded rationality based on ideas from statistical mechanics and information-theory.
• We systematically tested human subjects in their ability to solve combinatorial puzzles under different time limitations.