Ariel Rubinstein sat down for a video interview with me last week following a DEC lecture. A professor at Tel Aviv University as well as NYU, Rubinstein is an eminent game theorist and expert on the economic theory behind bargaining.
He spoke about how economic theory has gone through fundamental changes, in no small part due to growing interest in behavioral economics.
Rubinstein's current work on bounded rationality, which was the topic of his lecture at the Bank, revolves around the idea that, in decision-making, people's rationality is limited by the information they have, by their cognitive capacity, and by the finite amount of time they have to make a decision. The notion is to provide a theoretical approach that complements rationality as optimization, which views decision-making as a fully rational process of finding an optimal choice given the information available.
Many of Rubinstein's elegant mathematical ideas are generated in cafes, which is where he says the best kind of creative thought occurs. As a hobby, he photographs his favorite cafes around the world and has created a poster showing scores of such venues. It now hangs in many of those venerable establishments, including at Kramerbooks in DC. To see some of the pics, visit his personal website.
View the video chat with Rubinstein here.