“If you look at economics textbooks, they typically assume that we have complete information, understand everything about the environment that we are in, that we can map out ad infinitum what strategies other actors are going to play against us, and that we do not have any bandwidth limits on our ability to process information. Simon says this is nonsense. We know human beings simply can’t do that. We are flawed. Our individual capacity to understand the world is limited and so what we tend to do in ordinary life, he says, is go for good seeming solutions that are obvious to us rather than for optimal ones. This means that a lot of the actual processes of cognition, or computation that we do, have to be offloaded onto other social systems rather than our individual brains.” Read more...
The Best Books on the Politics of Information