However, full-blown models of individual interaction in game theory, where every
possible human interaction and defined response is considered, and every agent is
assumes that every other is fully rational, have fallen into widely acknowledged
problems of tractability and relevance. In response, some have hinted at an altered
direction of research, involving a world where rational capacities are bounded, and
specific institutions structure agent interactions (Kirman and Gérard-Varet, 1999).
Instead of the macro economy being treated as a magnified representative individual,
social structure has to be introduced in a population of heterogeneous individuals. This is
another open door for institutional analysis.