Economics and Rationality of Organizations: An Approach to the Work of Herbert A. Simon
24 Pages Posted: 3 Apr 2010
Date Written: April 1, 2010
One of the main achievements of Herbert A. Simon in organizational theory is analytically evaluating the psychology of individual and collective behavior thus opening the ground for further research D. Kahneman, and T. Schelling. This article provides an assessment of the contributions of Simon's theory of organizations with special emphasis on the criterion of bounded rationality. It is interpreted Simon's criticism of the orthodox version of organizational bureaucracy and extends his analysis to the new institutional economics.
Keywords: Economic Theory, Organizations, Herbert Simon, Bounded Rationality, Kahneman, Schelling and Decision Theory
JEL Classification: A1, A10, A13, B15, B4, B41, C7, C72. D82
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