Modelling Bounded Rationality

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This book is a collection of notes I have developed over the last eight years and presented in courses and lectures at the London
School of Economics (1989), Hebrew University (1989), University of Pennsylvania (1990), Columbia University (1991), Princeton University
(1992, 1995), University of Oslo (1994), Paris X (1995), Oberwesel (1995), New York University (1996), and my home university, Tel Aviv (1990, 1994). I completed writing the book while I was a visiting scholar at the Russell Sage Foundation, New York. A preliminary version was presented as the Core Lectures at Louvain-La-Neuve in October 1995; this version served as the basis for my Zeuthen Lectures at the University of Copenhagen in December 1996.
The book provides potential material for a one-term graduate course. The choice of material is highly subjective. Bibliographic notes appear at the end of each chapter. The projects that follow those notes contain speculative material and ideas that the reader should consider with caution. My thanks to my friends Bart Lipman and Martin Osborne for their detailed comments and encouragement. I am grateful to all
those students, especially Dana Heller, Rani Spigeler, and Ehud Yampuler, who commented on drafts of several chapters, to Nina Reshef, who helped edit the English-language manuscript, to Dana Heller, who prepared the index, and to Gregory McNamee who copyedited the manuscript.

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