"In Administrative Behavior, bounded rationality is largely characterized as a residual category — rationality is bounded when it falls short of omniscience. And the failures of omniscience are largely failures of knowing all the alternatives, uncertainty about relevant exogenous events, and inability to calculate consequences. There was needed a more positive and formal characterization of the mechanisms of choice under conditions of bounded rationality... Two concepts are central to the characterization: search and satisficing."
Quote Details
Added by wikiquote-import-bot
Unverified quote
0 likes
Original Language: English
Available Languages (1)
Sources
Herbert A. Simon, "Rational decision making in business organizations", Nobel Memorial Lecture 1978. p. 502.
https://en.wikiquote.org/wiki/Bounded_rationality
Revision History
No revisions have been submitted for this quote.
Categories
Bounded rationality
25 quotes on TrueQuotesView all quotes by Bounded rationality →
Related Quotes
"Both from these scanty data and from an examination of the postulates of the economic models it appears probable that…"
"The type of rationality we assume in economics — perfect, logical, deductive rationality — is extremely useful in gen…"
"There are two basic ways market organization is brought about... Some combination of the two is usual the case:"
"# Strategic structuring, informal or formal, whereby social agents, including the state, establish a rule regime regu…"
"# Emergent structuring, whereby participants discover or adopt certain similar strategies within bounded rationality …"
"The term “bounded rationality” was coined in the 1950s by Herbert A. Simon."
"Models of bounded rationality describe how a judgement or decision is reached (that is, the heuristic processes or pr…"
"One is forced to assume that ordinary people have the computational capabilities and statistical software of economet…"
"Although contributions of many writers have helped the rise of behavioral economics including psychologists Kahneman …"
"All that most economists know about Herbert Simon is that he wrote about bounded rationality and organizational behav…"