Rational Theory Research Articles

Sentient Rationality in the Digital Age: Integration of Neuroscience and Philosophy for Decision Making

This article delves into the intriguing intersection between human rationality and digital technologies, with a specific focus on the influence of emotion and artificial intelligence on decision making. Drawing from the theory of sentient rationality, it examines how emotional and somatic components shape rationality in a digital context. The implications of these insights for understanding human cognition are thoroughly discussed. Moreover, the article proposes innovative transemiotic approaches that integrate neuroscience and philosophy, inviting the reader to delve deeper into these novel methods. The conclusion presents practical recommendations for future research, underscoring their potential applications in the rapidly evolving digital age.

Rationality and Responding to Normative Reasons

My aim in this paper is to show that the reasons-responsiveness theory of rationality fails to explain the intuitive irrationality of practical akrasia. First, I argue that the best explanation for the distinction between acting in accordance with a normative reason and responding to that reason involves appealing to one’s competence or knowledge about how to respond to that reason. Nevertheless, one might possess practical competence to respond to her decisive practical reasons to perform an action, without having the parallel theoretical competence to rationally believe, through deliberation, that she has decisive reason to perform that action. If possessing a normative reason is a matter of having the ability to respond to that reason, and responding to a reason is grounded in facts about manifesting one’s competence about how to respond to that reason, then the mismatch between one’s practical and theoretical competences may give rise to a normative mismatch between one’s possessed reasons for action and one’s possessed reasons for what to believe about her reasons for action. In this case, there would be possible situations where one possesses decisive reasons to perform an action ⱷ, but lacks sufficient reasons to believe that she has decisive reasons to ⱷ. In those situations, the reasons-responsiveness theory requires one to act against her own normative judgment about what she ought to do. I conclude by considering whether it could be rationally permissible to act against one’s own normative judgment about what one ought to do if one’s reasons for action diverge from one’s reasons for a certain judgment about what one ought to do.

Beyond traditional consumer research - current adoption and next steps for neuromarketing

<b>Purpose</b>. Neuroscience used for conducting market research is called Neuromarketing. Though the effectiveness of Neuromarketing over traditional research has been proven, its adoption is very limited. The automotive sector is one of the biggest industries worldwide and due to lack of detailed research on the adoption of Neuromarketing in the Automotive space, authors have tried to bridge this gap. They have identified the current adoption of Neuromarketing and have suggested solutions to overcome barriers. This research will help Automotive brands, market research companies and Neuro experts to come up with relevant solutions to increase the usage of Neuromarketing <b>Design.</b> The authors first reviewed any available literature related to the Automotive landscape. Then, in-depth discussions with Automotive players were conducted in order to clarify the Neuromarketing adoption in the current scenario. Finally, Neuro experts, viz. neuroscientists and research companies, were consulted for possible future solutions <b>Findings</b>. Literature reviews and discussions with Automotive companies revealed that Neuromarketing adoption is limited as compared to traditional market research methods. Though the majority are aware of Neuromarketing, limited companies have used it. It is mostly undertaken in advertisement and product testing, primarily using EEG and Eye tracking. Neuromarketing is perceived as being expensive and difficult to understand and having ethical concerns. It is also believed that Neuromarketing does not answer the ‘why’ behind the participants’ responses. The paper also validated Simon’s Bounded Rationality Theory where automotive organizations used conformity instead of maximum value in adoption of neuromarketing. Expert discussions clarified that most of the Neuromarketing limitations like ethics, cost, lower sample, lab setup, etc. mentioned by Automotive players can be overcome. Hence the next step is to take this science to maximum automotive players and make them aware of the development, conduct pilot studies, remove their inhibitions about Neuromarketing and complement it with traditional research methods.

Determinants of Quality Jobs Among Youth: An Empirical Investigation Across Occupations in Lagos, Nigeria

Quality jobs, a multidimensional construct, have been perceived differently in labour management literature. The view that the quality of earnings is the primary determinant of job quality has been criticized. This study, therefore, investigates the characteristics and major factors determining quality jobs among the youths in Lagos, Nigeria. Leveraging on the rational actor theory, Maslow's theory of needs, and Amartya Sen’s capability approach, four hundred (400) employees, mainly youths, across occupational sectors within Lagos, Nigeria, were sampled. Using descriptive statistics and exploratory factor analysis, the study revealed that though wage (quality of earning) is an essential factor determining youths’ perception of a job, findings revealed other vital factors that youths consider in determining quality jobs. The work environment, dignity, and workers’ protection, among others, are identified in this study as determinants of quality jobs. Far-reaching implications, both practical and policy-oriented, emerged for all stakeholders.

Pricing model of ride-hailing platform considering rationally inattentive passengers

ABSTRACT The ride-hailing services are booming in our daily lives, but it is unclear that how the platforms should set prices to maximize their profits when facing one kind of rationally inattentive passengers in a two-sided market. To fill this gap, we establish a profit maximization model for the ride-hailing platform based on queuing theory and rational inattention theory and analyze the properties of the model. Numerical examples are presented to demonstrate the impacts of perceived high and low service levels, information cost and prior belief on the optimal price and commission rate of the ride-hailing platform. The results show that (1) for different cities, there is always an optimal pricing strategy to maximize the profit of the platform. (2) To ensure maximum profit, the platform should disclose the service information of ride-hailing as much as possible, but also maintain the unknownness of ride-hailing services appropriately.

Hard Choices and Ultimate Ends

Abstract I propose a novel view on hard choices. It broadens the concept to include not only ‘classic’ hard choices but also transformative and aspirational choices. I argue that a choice is hard when an individual does not have an all-things-considered reason to choose one option over another and the objects of choice are ultimate ends. Construing hard choices in this way supports and explains the widely held assumption that, when faced with hard choices, it is impermissible to choose arbitrarily. More specifically, it shows that it is impermissible to choose arbitrarily by plumping, and yet legitimate to do so by picking. Understanding hard choices in the way I propose sheds light on the fact that there are moral and agential constraints that limit the space of permissible decision-making procedures when confronted with ‘classic’ hard, transformative, and aspirational choices. Delineating these constraints, in turn, can provide guidance to critically appraise current theories of practical rationality.

Rational inattention in neural coding for economic choice.

Mental operations like computing the value of an option are computationally expensive. Even before we evaluate options, we must decide how much attentional effort to invest in the evaluation process. More precise evaluation will improve choice accuracy, and thus reward yield, but the gain may not justify the cost. Rational Inattention theories provide an accounting of the internal economics of attentionally effortful economic decisions. To understand this process, we examined choices and neural activity in several brain regions in six macaques making risky choices. We extended the rational inattention framework to incorporate the foraging theoretic understanding of local environmental richness or reward rate, which we predict will promote attentional effort. Consistent with this idea, we found local reward rate positively predicted choice accuracy. Supporting the hypothesis that this effect reflects variations in attentional effort, richer contexts were associated with increased baseline and evoked pupil size. Neural populations likewise showed systematic baseline coding of reward rate context. During increased reward rate contexts, ventral striatum and orbitofrontal cortex showed both an increase in value decodability and a rotation in the population geometries for value. This confluence of these results suggests a mechanism of attentional effort that operates by controlling gain through using partially distinct population codes for value. Additionally, increased reward rate accelerated value code dynamics, which have been linked to improved signal-to-noise. These results extend the theory of rational inattention to static and stationary contexts and align theories of rational inattention with specific costly, neural processes.

On fusing matrices associated with conformal boundary conditions

In the context of rational conformal field theories (RCFT) we look at the fusing matrices that arise when a topological defect is attached to a conformal boundary condition. We call such junctions open topological defects. One type of fusing matrices arises when two open defects fuse while another arises when an open defect passes through a boundary operator. We use the topological field theory approach to RCFTs based on Frobenius algebra objects in modular tensor categories to describe the general structure associated with such matrices and how to compute them from a given Frobenius algebra object and its representation theory. We illustrate the computational process on the rational free boson theories. Applications to boundary renormalisation group flows are briefly discussed.

Investment volatility during red sea crisis: Study in Asean country

The objective of this research is to investigate the volatility of investment instruments, with the aim of providing the best model for predicting investment value. In this topic, the main concepts and theories that underpin the research are presented. Efficient market hypothesis and rational expectations theory stand out, providing a solid basis for understanding the context of the investigation. The methodology adopted for this research GARCH modelling to analysis investment instrument and the impact of its volatility. Data collection was carried out through yahoo finance website and investing website during red sea war event. The research identified optimal GARCH models for different indexes and assets: GARCH (1,1) for JCI, STI, SET, and Bitcoin, E-GARCH (1,1) for KLSE, PSE, and VSE, and GJR-GARCH (1,1) for Gold. It discussed volatility persistence and leverage effects during the Red Sea War, considering model sensitivities, geopolitical impacts, and research limitations. This research's practical and theoretical implications inform financial risk management, highlighting the importance of robust volatility modeling. The findings can enhance portfolio optimization and investment strategies during geopolitical instability. These insights underscore the need for sophisticated approaches to manage financial risks effectively. This research uses advanced GARCH models to analyze volatility during the Red Sea Crisis, revealing asset-specific behaviors under geopolitical stress. The findings improve financial risk management and investment strategies in unstable conditions, enhancing volatility predictions and professional practices.

Effect of concrete cover on the pure torsional behavior of reinforced concrete beams: Analytical model

Experimental data on RC members subjected to pure torsion is compiled from published studies so far. Interestingly, the past studies have concentrated largely on members with small to moderate concrete covers, with handful data on members with thick concrete cover. Widely accepted torsion models including the diagonal compression field theory (CFT), softened truss model (STM) and softened membrane model for torsion (SMMT) are verified on the domains of experimental data missing-in specimens with thick concrete cover. With increasing demand for durability design of RC structures use of thick concrete cover, say up to 75 mm, is being introduced in practice. Recent experimental investigation by the authors demonstrated that spalling of concrete cover, particularly in cases of thick covers, significantly impacts the torsional behavior of RC members. The present study uses these set of experiments to look at the response prediction capability of the existing advanced models and assess the reliability of existing concrete cover spalling theories. For cases with thick cover, the existing models either did not adequately capture the ultimate capacity or erroneously predicted the torsional behavior of the members due to the different mechanics between RC beams with thin and thick covers. Similarly, the spalling theories failed to fully explain the physically observed spalling behavior. Guided by the recent experimental observations and the apparent gaps, the study provides a rational theory for the spalling of concrete cover. The initiation and gradual evolution of concrete cover spalling is traced by observing the acting spalling moment and spalling resistance formulated in the proposed spalling model. The proposed spalling model inherently assumes members susceptibility to spalling of cover concrete and is governed by, the thickness of the concrete cover, tensile strength of concrete, presence of rebar cage and their location, and size of the member. The theory is unified and can explain the spalling of cover due to torsion as well as shear. Its capability is examined by integrating the approach into existing truss model. When compared with state-of-the-art models, the proposed method provides consistent prediction with a relatively smaller scatter, for cases with thick concrete cover as well.

Play in Cognitive Development: From Rational Constructivism to Predictive Processing.

It is widely believed that play and curiosity are key ingredients as children develop models of the world. There is also an emerging consensus that children are Bayesian learners who combine their structured prior beliefs with estimations of the likelihood of new evidence to infer the most probable model of the world. An influential school of thought within developmental psychology, rational constructivism, combines these two ideas to propose that children learn intuitive theories of how the world works in part by engaging in play activities that allow them to gather new information for testing their theories. There are still, however, at least two pieces missing from rational constructivist theories of development. First, rational constructivism has so far devoted little attention to explaining why children's preferred form of learning, play, feels so fun, enjoyable, and rewarding. Rational constructivism may suggest that children are curious and like to play because reducing uncertainty and learning better theories of the causal workings of the world is enjoyable. What remains unclear, however, is why reducing uncertainty in play is interesting, fun, and joyful, while doing so in other forms of learning can be frustrating or boring. Second, rational constructivism may have overlooked how children, during play, will take control of and manipulate their environment, sometimes in an effort to create ideal niches for surprise-extraction, sometimes for developing strategies for making the world fit with their predictions. These missing elements from rational constructivism can be provided by understanding the contribution of play to development in terms of predictive processing, an influential framework in cognitive neuroscience that models many of the brain's cognitive functions as processes of model-based, probabilistic prediction.

A non-unitary bulk-boundary correspondence: Non-unitary Haagerup RCFTs from S-fold SCFTs

We introduce a novel class of two-dimensional non-unitary rational conformal field theories (RCFTs) whose modular data are identical to the generalized Haagerup-Izumi modular data. Via the bulk-boundary correspondence, they are related to the three-dimensional non-unitary Haagerup topological field theories, recently constructed by a topological twisting of three-dimensional N=4 rank-zero superconformal field theories (SCFTs), called S-fold SCFTs. We propose that, up to the overall factors, the half-indices of the rank-zero SCFTs give the explicit Nahm representation of four conformal characters of the RCFTs including the vacuum character. Using the theory of Bantay-Gannon, we can successfully complete them into the full admissible conformal characters of the RCFTs.

Subjective Well-Being of Chief Executive Officers and Its Impact on Stock Market Volatility During the COVID-19 Pandemic in Poland: Agent-Based Model Perspective

This study aimed to connect the behavioral corporate finance perspective (micro level) with complexity theory via agent-based modeling to analyze the impact of selected psychological factors of chief executive officers (CEOs) on stock market volatility (macro level). Specifically, we wanted to explore whether Polish CEOs’ subjective well-being (SWB) influenced their managerial decisions during the COVID-19 pandemic and how it might be related to the volatility of stock prices during this critical period in Poland. Our study was based on a survey of Polish CEOs who managed companies listed on the Warsaw Stock Exchange. In particular, 255 CEOs completed the Satisfaction with Life Scale, the Positive and Negative Affect Scale, and a business survey on the impact of the COVID-19 pandemic on company management. Using the results of this survey, we built an agent-based model to investigate how CEOs’ decision-making, stemming from their SWB levels, influences the perception of prices by individual traders and, in turn, how it is translated into aggregate stock market volatility. The results indicate the pathways through which the microscopic-level SWB of CEOs influences market price formation at a macroscopic level. The findings obtained from our model may shed new light on the rational expectations theory applied to stock market volatility during the financial crisis.

Are the best higher education institutions also more sustainable?

Purpose The purpose of this study is to analyze the integration of sustainable practices in the strategies and operations of world-class higher education institutions (HEIs) under the theoretical guidance of Max Weber's instrumental and value rationalities. Design/methodology/approach The results of the Quacquarelli-Symonds World University Ranking, Times Higher Education World University Rankings, THE Impact Rankings and GreenMetric World University Ranking rankings from 2019 to 2022 were paired, and the correlation between them was verified. Institutions with simultaneous occurrence in the four rankings in at least one of the years were also classified. A quantitative and qualitative methodology was used to explore how elite HEIs integrate sustainable practices into their operations and strategies, under the theoretical guidance of Max Weber's instrumental and value rationalities. Furthermore, multivariate regression models with supervised data mining techniques were applied, using the SMOReg algorithm on 368 instances with multiple attributes, to predict the numerical value of sustainability in the rankings. Coefficients were assigned to variables to determine their relative importance in predicting rankings. Findings The results of this study suggest that although many HEIs demonstrate a commitment to sustainability, this rarely translates into improvements in traditional rankings, indicating a disconnect between sustainable practices and global academic recognition. Research limitations/implications The research has limitations, including the analysis being restricted to data from specific rankings between 2019 and 2022, which may limit generalization to future editions or rankings. The predictive models used selected data and, therefore, cannot cover the full complexity of metrics from other rankings. Furthermore, internal factors of HEIs were not considered, and the correlations identified do not imply direct causality. The limited sample and potential methodological biases, together with the heterogeneity of the rankings, restrict the generalization of the results. These limitations should be considered in future studies. Practical implications The theoretical contributions of this study include an in-depth understanding of the intersection between academic excellence and environmental and social responsibility. From a management perspective, guidance is provided on integrating sustainability into HEI strategies to enhance visibility and classification in global rankings, while maintaining academic integrity and commitment to sustainability. Social implications This highlights the importance of reassessing academic rankings criteria to include sustainability assessments, thereby encouraging institutions to adopt practices that genuinely contribute to global sustainable development. Originality/value The originality lies in the predictive analysis between these rankings, examining the link between the level of sustainability of an HEI and its classification as a World Class University. Furthermore, it combines theories of rationality with the analysis of sustainability integration in elite HEIs, introducing new analytical perspectives that can influence future educational policies and institutional practices.

Reconceptualising burdens – NATO centres of excellence: club goods, informal institutions, and partner contributions

ABSTRACT Research on NATO burden sharing comprises dozens of works. Since the end of the cold war, NATO adapted, enlarged, and institutionally complexified its mandates and area of operations. Yet, burden sharing research rarely accounts for such aspects given the political and scholarly focus on NATO’s target of 2% of GDP on military spending since the 2000s. This research merges rational institutionalism with collective action models on club goods production to study NATO Centres of Excellence. These 30 institutions are externally funded, independently run, and address the collective strategic problems associated with Alliance Transformation using informal arrangements, the Memorandum of Understanding. The contents of those agreements are compared using rational institutional design theory. This article offers original data reconceptualising the NATO burdens partners undertake beyond military expenditures using COE participation and hosting while offering a framework for a future examination of how the COE institutional agreements manage strategic problems (i.e. enforcement, allocation, uncertainty, etc.) with expanded data.

Simulation of smallholder farmers’ adaptation to irrigation-induced landslides: An ABM application in human-land-policy interaction

Understanding the dynamic interaction between smallholder farmers' adaptation decision-making behavior and the policy environment in the context of human-induced disasters is vital for developing effective policies to enhance farmers' participation in disaster risk reduction (DRR). From the perspective of bounded rationality theory, this study constructs the farmer-land-policy interaction (FLPI) model, taking Heifangtai in Loess Plateau, China, as a case study. Based on first-hand micro data, this study combines static econometric model analysis with dynamic simulation techniques, achieving a combination of micro decision-making and macro policies to understand the interaction between farmers and the policy environment. The FLPI model simulates farmers' future adaptations under multiple policy scenarios (baseline, mandatory policy, and subsidy policy scenario with a combination of different policy tools) from 2021 to 2030. Compared with the simulation results of the baseline scenario, the results indicate that mandatory and subsidy policies are effective interventions incentivizing farmers’ adaptation behavior for effective DRR. Mandatory policies rely on policy intervention to ensure that farmers adopt drip irrigation and to promote the generation of long-term behavior of farmers. And the results also propose a suitable subsidy range of 700–900 yuan and with a period of more than 2 years for subsidy policy. This study enriches the research on the interaction simulation between farmer behavior and policy environment under the background of human-induced disasters. And the FLPI model uses survey data as input, which could provide behavior rules closer to real situations than that of simplifying assumptions. The research indicates that the “bottom-up” approach of the FLPI model proven more appropriate to presenting micro-level adaptation and dynamic changes than traditional statistical models.And the agent-based model is very suitable for simulating the behavioral decision-making changes of farmers in policy environments.

The evaluation of computational modelling performance within the context of rationality theory: finding the area between two curves

ABSTRACT This study aimed to investigate the development of computational modelling performances of students during the computer-assisted system (CAS) integrated ACODESA method based on Habermas’ construct of rationality. The participants included 22 university students. In the study, in which the embedded design was utilised, the qualitative phase aimed to examine the computational modelling performances of the students during the stages of CAS integrated ACODESA method. It was determined that the students showed improvement in modelling the Riemann sum accurately with CAS, and in choosing to use for loop to determine the area of the rectangles that represented the Riemann sum, and in comprehensibility and acceptability. In the quantitative phase of the study, pre and post-tests were conducted to determine the effect of the CAS-integrated ACODESA method on computational modelling performances of the students. The computational modelling scores were compared with the paired samples t-test. It was found that CAS-integrated ACODESA method made statistically significant effect on computational modelling performances of the students.

The Elimination of Rupture: Social Authority's Attempt to Transcend Binary Distinctions

As a representative work of Coleman's theory of rational action, "Foundations of Social Theory" contains Coleman's ideological intention of building a bridge between the macro and the micro, in which the theory of social authority, as an integral part of the theory of rational action, is also an attempt to construct the micro-macro dichotomy in the generation of its authority relationship and authority system. Therefore, based on the methodology and research framework of Coleman's rational action theory system, we select the authority idea of the book "The Foundations of Social Theory" as the object of exposition, and try to comprehensively discuss Coleman's social authority idea through analyzing its middle-level theory of social authority from the aspects of foundation of social authority theory, the granting of authority, the social performance of authority and the overall characteristics of Coleman's social authority thoughts. It seeks to reveal Coleman's attempt to transcend the binary distinction between micro and macro at the authority level.

The Impact of Investor Expectation on the Financial Decision-Making

Unlike traditional finance, behavioral finance challenges the traditional financial theory of investor rationality, emphasizing that investors are not absolutely rational in real life. This perspective provides new insights for understanding and predicting financial markets. This study examines core concepts in behavioral finance, such as loss aversion, market anomalies, momentum effects, reversal effects, endowment effects, and framing effects, and analyzes how they influence investors' financial decisions. These concepts highlight the significant role of human psychology and behavior in shaping financial decisions, thus aiding investors in making more rational choices in complex financial markets. Loss aversion, for instance, suggests that investors are more sensitive to losses than to gains, leading to suboptimal decision-making. Market anomalies, such as price bubbles and crashes, indicate that markets are not always efficient. Momentum effects suggest that past stock performance can predict future trends, while reversal effects point to the tendency of extreme stock performances to revert to the mean. The endowment effect reveals that individuals value their own possessions more highly than similar items they do not own. Lastly, framing effects demonstrate how the presentation of information can influence decision-making. Future research can delve deeper into how the framing effect can be harnessed to improve the design and marketing strategies of financial products, thereby enhancing the efficiency and effectiveness of investment decisions. This exploration could lead to more sophisticated financial products and better-informed investors, ultimately contributing to a more stable and efficient financial market.

Are South Korea’s Environmental Policies Rational? An Analysis Focusing on Fine Dust Programs in the Seoul Metropolitan Area

Since 2018, the government of South Korea has strengthened its environmental policies to solve the problem of fine particulate matter in the air. Because of these strict regulations, diesel cars have been replaced with cleaner vehicles, and coal power plants have been shut down. Despite these government efforts, some researchers assert that fine dust programs have failed in Seoul, the capital of Korea. In other words, they conclude that the central and local governments designed and implemented the policies unreasonably. Despite these critics, this study attempts to prove that the government has thoroughly and meticulously prepared its policies on fine particles. Also, it tries to demonstrate that the policy scheme has been properly established. To attain these research goals, the theory of procedural rationality is adopted and utilized. As a result of the analysis, six steps of procedural rationality were identified in the Korean policy on fine dust: problem identification, goal setting, searching for alternatives, consequence prediction, comparison of alternatives, and policy decision. In conclusion, this study provides suggestions for environmental policies in other metropolitan cities, especially in developing countries that suffer from severe air pollution.