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Bounded rationality can have significant effects on political decision-making, voter behavior, and policy outcomes. A prominent example of this is heuristic-based voting. According to the theory of bounded rationality, individuals have limited time, information, and cognitive resources to make decisions.
Herbert Alexander Simon (June 15, 1916 – February 9, 2001) was an American scholar whose work influenced the fields of computer science, economics, and cognitive psychology. His primary research interest was decision-making within organizations and he is best known for the theories of " bounded rationality " and " satisficing ".
The term satisficing, a portmanteau of satisfy and suffice, [2] was introduced by Herbert A. Simon in 1956, [3] [4] although the concept was first posited in his 1947 book Administrative Behavior. [ 5 ] [ 6 ] Simon used satisficing to explain the behavior of decision makers under circumstances in which an optimal solution cannot be determined.
Theory of the Firm: Resource Allocation in a Market Economy (1965) by Kalman J. Cohen and Richard M. Cyert. The Sciences of the Artificial (1969) by Herbert A. Simon. Human Problem Solving (1972) by Allen Newell and Herbert A. Simon. Bayesian Analysis and Uncertainty in Economic Theory (1987) by Richard M. Cyert and Morris H. DeGroot.
As mentioned above, some economists have developed models of bounded rationality, such as Herbert Simon, which hope to be more psychologically plausible without completely abandoning the idea that reason underlies decision-making processes. Simon argues factors such as imperfect information, uncertainty and time constraints all affect and limit ...
Herbert A. Simon formulated one of the first models of heuristics, known as satisficing.His more general research program posed the question of how humans make decisions when the conditions for rational choice theory are not met, that is how people decide under uncertainty. [13]
Administrative Behavior: a Study of Decision-Making Processes in Administrative Organization is a book written by Herbert A. Simon (1916–2001). It asserts that "decision-making is the heart of administration, and that the vocabulary of administrative theory must be derived from the logic and psychology of human choice", and it attempts to describe administrative organizations "in a way that ...
The theory of moral satisficing applies the study of ecological rationality to moral behavior. [69] [70] In this view, much of moral behavior is based on social heuristics rather than traits, virtues, or utilitarian calculations. Social heuristics are a form of satisficing, a term coined by Nobel laureate Herbert Simon. [71]