Is bounded rationality in entry decisions necessarily bad for social welfare?

Research output: Contribution to journalArticlepeer-review


In the article Boundedly Rational Entrepreneurs and Antitrust, Professor Tor provides an excellent overview of the effects of bounded rationality on the behavior of entrepreneurs in the marketplace. In this short note, I offer some observations on the article. In particular, it suggests several additional parameters that might be worth exploring before we can reach a conclusion about the role that bounded rationality plays in economically irrational entry decisions. It also suggests some factors that should be weighed before determining whether irrational entry is socially harmful. Finally, the note provides several observations with regard to regulation, including the effects of algorithmic applications on bounded rationality decisions by entrepreneurs.

Original languageEnglish
Pages (from-to)541-545
Number of pages5
JournalAntitrust Bulletin
Issue number4
StatePublished - 1 Dec 2016

Bibliographical note

Also published as chapter 4 in: Entrepreneurship and Antitrust (AAI, 2017)


  • Antitrust
  • Bounded rationality
  • Competition
  • Competition law
  • Innovation
  • Rationality

ASJC Scopus subject areas

  • Economics and Econometrics
  • Law


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