Browse by:

Bounded Rationality in the Digital Age

The fifteenth in a series of excerpts from Minds, Models and Milieux: Commemorating the Centennial of the Birth of Herbert Simon. Peter E. Earl One of the great tragedies in economics in the decades since Simon received the 1978 Alfred Nobel Memorial Prize in Economic Sciences is that the uptake of his ideas within the discipline…

Models of Environment

The thirteenth in a series of excerpts from Minds, Models and Milieux: Commemorating the Centennial of the Birth of Herbert Simon. Marcin Miłkowski Herbert A. Simon is well known for his account of bounded rationality. Whereas classical economics idealized economic agency and framed rational choice in terms of the decision theory, Simon insisted that agents need…

Simon on Social Identification: Two Connections with Bounded Rationality

The twelfth in a series of excerpts from Minds, Models and Milieux: Commemorating the Centennial of the Birth of Herbert Simon. Rouslan Koumakhov Social identifications are one of Herbert Simon’s most recurrent themes. Starting with Administrative Behavior (hereafter, AB) (Simon, 1947/1997), he investigates that theme throughout his scientific work on an impressive number of occasions. Perhaps…

Organizational Decisions in the Lab

The eleventh in a series of excerpts from Minds, Models and Milieux: Commemorating the Centennial of the Birth of Herbert Simon. Massimo Egidi “Bounded Rationality” is a label that gathers the most important advancements of Herbert Simon’s scientific production. His fundamental contributions to cognitive psychology and to the theory of problem solving were developed jointly, each…

Multiple Equilibria, Bounded Rationality, and the Indeterminacy of Economic Outcomes: Closing the System with Institutional Parameters

The tenth in a series of excerpts from Minds, Models and Milieux: Commemorating the Centennial of the Birth of Herbert Simon. Morris Altman A critical point made by behavioral economists from a wide set of methodological perspectives is that individuals typically do not make decisions that are consistent with conventional economic theoretical norms of rational…

From Bounded Rationality to Expertise

The ninth in a series of excerpts from Minds, Models and Milieux: Commemorating the Centennial of the Birth of Herbert Simon. Fernand Gobet Introduction Historically, a pervasive assumption in the social sciences, in particular economics, is that humans are perfect rational agents. Having full access to information and enjoying unlimited computational resources, they maximise utility when…

Boundedly Rational Decision-Making under Certainty and Uncertainty: Some Reflections on Herbert Simon

The sixth in a series of excerpts from Minds, Models and Milieux: Commemorating the Centennial of the Birth of Herbert Simon. Mark Pingle Introduction Our collective rationality became more bounded on February 9, 2001. Herbert Simon emphasized we humans are cognitively constrained, and those constraints impact our decisions. Yet, Herbert Simon’s mind was less constrained than most of…

Rationality and the true human condition

The fifth in a series of excerpts from Minds, Models and Milieux: Commemorating the Centennial of the Birth of Herbert Simon. Ron Sun The notion of rationality is important to many fields in social and behavioral sciences. Herbert Simon’s seminal work on “bounded rationality” and “satisficing” led to broadened conceptions of rationality, which significantly impacted a number of…

Towards a Rational Theory of Heuristics

The third in a series of excerpts from Minds, Models and Milieux: Commemorating the Centennial of the Birth of Herbert Simon. Gerd Gigerenzer Herbert Simon left us with an unfinished task: a theory of bounded rationality. Such a theory should make two contributions. For one, it should describe how individuals and institutions actually make decisions. Understanding this process would advance…