Relative rationality: Is machine rationality subjective?

TL;DR

This paper explores the concept of machine rationality, arguing that it is inherently subjective due to limitations in information processing and the non-convex nature of real-world problems, paralleling human bounded rationality.

Contribution

It introduces the idea that machine rationality is subjective, highlighting the impact of incomplete information and non-convex problems on rational decision-making.

Findings

Machine rationality is inherently subjective.

Real-world problems are predominantly non-convex.

Bounded rationality applies to machines as well.

Abstract

Rational decision making in its linguistic description means making logical decisions. In essence, a rational agent optimally processes all relevant information to achieve its goal. Rationality has two elements and these are the use of relevant information and the efficient processing of such information. In reality, relevant information is incomplete, imperfect and the processing engine, which is a brain for humans, is suboptimal. Humans are risk averse rather than utility maximizers. In the real world, problems are predominantly non-convex and this makes the idea of rational decision-making fundamentally unachievable and Herbert Simon called this bounded rationality. There is a trade-off between the amount of information used for decision-making and the complexity of the decision model used. This explores whether machine rationality is subjective and concludes that indeed it is.