Herbert A. Simon: Trending quotes

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Herbert A. Simon: 116 quotes4 likes

“Global rationality, the rationality of neoclassical theory, assumes that the decision maker has a comprehensive, consistent utility function, knows all the alternatives that are available for choice, can compute the expected value of utility associated with each alternative, and chooses the alternative that maximizes expected utility. Bounded rationality, a rationality that is consistent with our knowledge of actual human choice behavior, assumes that the decision maker must search for alternatives, has egregiously incomplete and inaccurate knowledge about the consequences of actions, and chooses actions that are expected to be satisfactory”

Herbert A. Simon

attain targets while satisfying constraints
Simon (1997, p. 17); As cited in: Gustavo Barros (2010, p. 460).
1980s and later

“Modem mainstream economic theory bravely assumes that people make their decisions in such a way as to maximize their utility. Accepting this assumption enables economics to predict a great deal of behavior (correctly or incorrectly) without ever making empirical studies of human actors.”

Herbert A. Simon

Simon (1990) "Invariants of Human Behavior" in: Annu. Rev. Psychol. 41: p. 6.
1980s and later

“We distinguish diagrammatic from sentential paper-and-pencil representations of information by developing alternative models of information-processing systems that are informationally equivalent and that can be characterized as sentential or diagrammatic. Sentential representations are sequential, like the propositions in a text. Diagrammatic representations are indexed by location in a plane. Diagrammatic representations also typically display information that is only implicit in sentential representations and that therefore has to be computed, sometimes at great cost, to make it explicit for use. We then contrast the computational efficiency of these representations for solving several. illustrative problems in mathematics and physics.”

Herbert A. Simon

Source: 1980s and later, "Why a diagram is (sometimes) worth ten thousand words," (1987), p. 65

“Whereas economic man maximizes - selects the best alternative from among all those available to him, his cousin, administrative man, satisfices - looks for a course of action that is satisfactory or "good enough."”

Herbert A. Simon book Administrative Behavior

Source: 1940s-1950s, Administrative Behavior, 1947, p. xxix.

“Roughly speaking, rationality is concerned with the selection of preferred behavior alternatives in terms of some system of values, whereby the consequences of behavior can be evaluated.”

Herbert A. Simon book Administrative Behavior

Source: 1940s-1950s, Administrative Behavior, 1947, p. 84.

“We need to augment and amend the existing body of classical and neoclassical economic theory to achieve a more realistic picture of economic process.”

Herbert A. Simon

Herbert A. Simon (1986) in Preface to: Gilad & Kaish (eds.), Handbook of Behavioral Economics, p. xvi.
1980s and later

“In the process of decision those alternatives are chosen which are considered to be appropriate means of reaching desired ends. Ends themselves, however, are often merely instrumental to more final objectives. We are thus led to the conception of a series, or hierarchy, of ends. Rationality has to do with the construction of means-ends chains of this kind.”

Herbert A. Simon book Administrative Behavior

Source: 1940s-1950s, Administrative Behavior, 1947, p. 62.

“A major task in organizing is to determine, first, where the knowledge is located that can provide the various kinds of factual premises that decisions require.”

Herbert A. Simon book Administrative Behavior

Source: 1940s-1950s, Administrative Behavior, 1947, p. 24.

“At the time of its initial publication, Public Administration helped to define this field of study and practice by introducing two major new emphases: an orientation toward human behavior and human relations in organizations, and an emphasis on the interaction between administration, politics, and policy. Without neglecting more traditional concerns with organization structure, Simon, Thompson, and Smithburg viewed administration in its behavioral and political contexts. The viewpoints they express still are at the center of public administration's concerns.”

Herbert A. Simon

Book abstract, 1991
1940s-1950s, Public administration, 1950

“It is not my aim to surprise or shock you – but the simplest way I can summarize is to say that there are now in the world machines that think, that learn and that create. Moreover, their ability to do these things is going to increase rapidly until – in a visible future – the range of problems they can handle will be coextensive with the range to which the human mind has been applied.”

Herbert A. Simon

Newell & Simon (1958), quoted in AI, by Daniel Crevier
1940s-1950s

“The first task of administrative theory is to develop a set of concepts that will permit the description, in terms relevant to the theory, of administrative situations. These concepts, to be scientifically useful, must be operational; that is, their meanings must correspond to empirically observable facts or situations.”

Herbert A. Simon book Administrative Behavior

Source: 1940s-1950s, Administrative Behavior, 1947, p. 43.

“Decision making processes are aimed at finding courses of action that are feasible or satisfactory in the light of multiple goals and constraints.”

Herbert A. Simon book Administrative Behavior

Source: 1940s-1950s, Administrative Behavior, 1947, p. 274.

“The true line is not between “hard” natural science and “soft” social sciences, but between precise science limited to highly abstract and simple phenomena in the laboratory and inexact science and technology dealing with complex problems in the real world.”

Herbert A. Simon

Source: 1980s and later, Models of my life, 1991, p. 302.

“First, most producers are employees of firms, not owners. Viewed from the vantage point of classical [economic] theory, they have no reason to maximize the profits of firms, except to the extent that they can be controlled by owners. Moreover, profit-making firms, nonprofit organizations, and bureaucratic organizations all have exactly the same problem of inducing their employees to work toward organizational goals. There is no reason, a priori, why it should be easier (or harder) to produce this motivation in organizations aimed at maximizing profits than in organizations with different goals. If it is true in an organizational economy that organizations motivated by profits will be more efficient than other organizations, additional postulates will have to be introduced to account for it.”

Herbert A. Simon

Simon (1991) "Organizations and Markets:" in: Journal of Economic Perspectives. 5 (2 Spring 1991): p. 28.
1980s and later

“If we accept values as given and consistent, if we postulate an objective description of the world as it really is, and if we assume that the decision maker's computational powers are unlimited, then two important consequences follow. First, we do not need to distinguish between the real world and the decision maker's perception of it: he or she perceives the world as it really is. Second, we can predict the choices that will be made by a rational decision maker entirely from our knowledge of the real world and without a knowledge of the decision maker's perceptions or modes of calculation. (We do, of course, have to know his or her utility function.)
If, on the other hand, we accept the proposition that both the knowledge and the computational power of the decision maker are severely limited, then we must distinguish between the real world and the actor's perception of it and reasoning about it. That is to say, we must construct a theory (and test it empirically) of the processes of decision. Our theory must include not only the reasoning processes but also the processes that generate the actor's subjective representation of the decision problem, his or her frame.”

Herbert A. Simon

H.A. Simon (1986), " Rationality in psychology and economics http://www.kgt.bme.hu/targyak/msc/ng/BMEGT30MN40/data/JoBus-86-rationality-HSimon.pdf," Journal of Business, p. 210-11” <br class="br">1980s and later

“The behaviour of individuals is the tool with which the organisation achieves its targets.”

Herbert A. Simon book Administrative Behavior

Source: 1940s-1950s, Administrative Behavior, 1947, p. 108.

“In order to survive, the organization must have an objective that appeals to its customers, so that they will make the contributions necessary to sustain it. Hence, organization objectives are constantly adapted to conform to the changing values of customers, or to secure new groups of customers in place of customers who have dropped away. The organization may also undertake special activities to induce acceptance of its objectives by customers - advertising, missionary work, and propaganda of all sorts.”

Herbert A. Simon book Administrative Behavior

Source: 1940s-1950s, Administrative Behavior, 1947, p. 114.

“Organizations and institutions provide the general stimuli and attention-directors that channelize the behaviors of the members of the group, and that provide those members with the intermediate objectives that stimulate action.”

Herbert A. Simon book Administrative Behavior

Source: 1940s-1950s, Administrative Behavior, 1947, p. 100.

“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.”

Herbert A. Simon

Source: 1960s-1970s, "Rational decision making in business organizations", Nobel Memorial Lecture 1978, p. 502; As cited in Barros (2010, p. 464-5).

“The criterion of efficiency dictates that choice of alternatives which produces the largest result for the given application of resources.”

Herbert A. Simon

Simon (1945, p. 179); As cited in: Harry M. Johnson (1966) Sociology: A Systematic Introduction. p. 287.
1940s-1950s