Economics and Rationality of organizations: an approach to the work of Herbert A. Simon

Estrada, Fernando (2010): Economics and Rationality of organizations: an approach to the work of Herbert A. Simon.

Abstract

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.

• Item Type: MPRA Paper
• Language: English
• Keywords: Economic theory, organizations, Herbert Simon, bounded rationality, Kahneman, Schelling, decision theory.
• Subjects: B - History of Economic Thought, Methodology, and Heterodox Approaches > B1 - History of Economic Thought through 1925 > B10 - General; A - General Economics and Teaching > A1 - General Economics; B - History of Economic Thought, Methodology, and Heterodox Approaches > B4 - Economic Methodology; G - Financial Economics > G3 - Corporate Finance and Governance; B - History of Economic Thought, Methodology, and Heterodox Approaches > B1 - History of Economic Thought through 1925 > B15 - Historical ; Institutional ; Evolutionary; L - Industrial Organization > L2 - Firm Objectives, Organization, and Behavior; D - Microeconomics > D8 - Information, Knowledge, and Uncertainty; C - Mathematical and Quantitative Methods > C7 - Game Theory and Bargaining Theory > C72 - Noncooperative Games; D - Microeconomics > D8 - Information, Knowledge, and Uncertainty > D81 - Criteria for Decision-Making under Risk and Uncertainty; B - History of Economic Thought, Methodology, and Heterodox Approaches > B1 - History of Economic Thought through 1925; C - Mathematical and Quantitative Methods > C7 - Game Theory and Bargaining Theory; A - General Economics and Teaching > A1 - General Economics > A10 - General; G - Financial Economics > G3 - Corporate Finance and Governance > G30 - General; D - Microeconomics > D0 - General; D - Microeconomics > D7 - Analysis of Collective Decision-Making; B - History of Economic Thought, Methodology, and Heterodox Approaches > B4 - Economic Methodology > B41 - Economic Methodology

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