Bounded Rationality and Global Solidarity Economy

Roida, Herlina Yoka (2022) Bounded Rationality and Global Solidarity Economy. Proceedings of the International Symposium on Transformative Ideas in A Changing World-The Global Solidarity Crisis, 1. pp. 133-138. ISSN 2987-2596

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Abstract

The mainstream economic assumptions are based on a rational framework that each party gets the greatest benefit (maximizing) and this should be enjoyed for all elements. However, it seems that humans are not rational creatures as the mainstream economic view assumes. Human rationality has the limits of ability; called as bounded rationality. Human decision making is oriented to the best results that can be achieved (satisficing). Thus, humans have limitations in knowing all alternatives or the consequences of each alternative because of limited information and knowledge. However, do humans in today’s digital era experience the limited information? In fact, the abundance of information allows all people to be connected to each other, including information about the economic impact of the Covid-19 pandemic. This indicates that global solidarity should be better transmitted through the availability of information at the present time. The obstacle that appears is not limited access to the information, but the cognitive structure that blocks the information itself. Humans choose the type of information that can satisfy their interests. Unfortunately, there is no exchange of information in building global solidarity; it is dominated by one-way narrative development. The reason is more to ideological differences as a closed knowledge system rather than asymmetric information reasons. Thus, this is closing the understanding of the existence of unwanted ‘others’. The economic assistance to the poor may not be based on the principles of equality and justice, but based on grouping of the same cognitive zones. As a consequence, this situation can hinder the solidarity movement globally, in the era of information abundance. Keywords: Bounded rationality, irrational behavior, solidarity economy

Item Type:	Article
Subjects:	Philosophy
Divisions:	Proceeding > Faculty of Philosophy
Depositing User:	Kristoforus Sri Ratulayn Kino Nara
Date Deposited:	02 Aug 2023 13:58
Last Modified:	21 Sep 2023 04:39
URI:	http://repository.ukwms.ac.id/id/eprint/36270

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