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The Incentives Lab
HBT-COG-0554 · Dimension COG · Cognition

Procedural Rationality

Herbert Simon's frame: agents use heuristics that work under real cognitive limits, not impossible global optima.

Reasoning·Mental Model·Grade B·draft· enriching…

Scientific Definition

Herbert Simon's frame: agents use heuristics that work under real cognitive limits, not impossible global optima.

Plain-English Definition

Herbert Simon's frame: agents use heuristics that work under real cognitive limits, not impossible global optima.

Feynman Explanation

'Rational' inside the brain you actually have, not the one economists drew on the board.

Core Principle

Herbert Simon's frame: agents use heuristics that work under real cognitive limits, not impossible global optima.

Mechanisms

Psychological

Pending editorial review.

Behavioral Economic

Herbert Simon's frame: agents use heuristics that work under real cognitive limits, not impossible global optima.

Neurological

Pending editorial review.

Evolutionary

Pending editorial review.

Sociological

Pending editorial review.

Computational

Pending editorial review.

Systems

Designing policies and tools that assume bounded, not infinite, decision capacity.

Inputs (Triggers)

Pending editorial review.

Outputs (Behaviors)

Pending editorial review.

Behavioral Signature

'Rational' inside the brain you actually have, not the one economists drew on the board.

Examples

Everyday
  • Camerer & Loewenstein cite Simon to justify behavioral assumptions about willpower and computation.
Modern (Organizational)
  • Designing policies and tools that assume bounded, not infinite, decision capacity.
Historical

Pending editorial review.

Famous Experiments

Pending editorial review.

Design Principles

  • Stop optimizing for the agent in the textbook. Optimize for the one in the meeting.

Measurement Approaches

Pending editorial review.

Evidence

Evidence Grade
B (A strongest → E speculative)
Replication
★★★☆☆
Intervention Confidence
3 / 5
Consensus
Pending editorial review (HBT v1.0 auto-seed).
Limitations
Pending editorial review (HBT v1.0 auto-seed).
Open Research Questions

Pending editorial review.

Primary References

Pending editorial review.

Signature Section

The Perverse Incentive Lens™

How this behavior is exploited — and how to redesign around it.

Exploitation
Designing policies and tools that assume bounded, not infinite, decision capacity.
Amplifying Incentives
Designing policies and tools that assume bounded, not infinite, decision capacity.
Org Failure Modes
Designing policies and tools that assume bounded, not infinite, decision capacity.
Societal Failure Modes
Pending editorial review (HBT v1.0 auto-seed).
Ethical Considerations
Pending editorial review (HBT v1.0 auto-seed).
Redesign Strategies
Stop optimizing for the agent in the textbook. Optimize for the one in the meeting.
Diagnostic Questions
  • Stop optimizing for the agent in the textbook. Optimize for the one in the meeting.
Warning Signs

Pending editorial review.

Red Flags

Pending editorial review.

Intervention Playbook
Individual
Stop optimizing for the agent in the textbook. Optimize for the one in the meeting.
Team
Pending editorial review (HBT v1.0 auto-seed).
Organization
Pending editorial review (HBT v1.0 auto-seed).
Policy
Pending editorial review (HBT v1.0 auto-seed).
AI Implications
Detection
Pending editorial review (HBT v1.0 auto-seed).
Measurement
Pending editorial review (HBT v1.0 auto-seed).
Mitigation
Pending editorial review (HBT v1.0 auto-seed).
Responsible Use
Pending editorial review (HBT v1.0 auto-seed).

Interactive Mini Network

Click any neighbor to re-center the graph and follow the threads of connection.

HBT-COG-0554 · COG
Procedural Rationality
PRAbAbstractionsABAdaptive BiasABAdditive BiasAAAffirming a DisjunctADAgent DetectionARAlder's RazorAlAlgorithmsAMAll Models Are WrongABAllegiance BiasAFAnecdotal Fallacy

Knowledge Graph Neighbors

Version History

v1.1.0 · 2026-06-28Initial auto-seed from corpus.