“The first consequence of the principle of bounded rationality is that the intended rationality of an actor requires him to construct a simplified model of the real situation in order to deal with it. He behaves rationally with respect to this model, and such behavior is not even approximately optimal with respect to the real world. To predict his behavior we must understand the way in which this simplified model is constructed, and its construction will certainly be related to his psychological properties as a perceiving, thinking, and learning animal.”

— Herbert A. Simon

Source: 1940s-1950s, Models of Man, 1957, p. 198; Cited in P. Slovic (1972, p. 2).

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Herbert A. Simon 58

American political scientist, economist, sociologist, and p… 1916–2001

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“The principle of bounded rationality [is] the capacity of the human mind for formulating and solving complex problems is very small compared with the size of the problems whose solution is required for objectively rational behavior in the real world — or even for a reasonable approximation to such objective rationality.”

Herbert A. Simon book Administrative Behavior

Variant: The principle of bounded rationality [is] the capacity of the human mind for formulating and solving complex problems is very small compared with the size of the problems whose solution is required for objectively rational behavior in the real world — or even for a reasonable approximation to such objective rationality.
Source: 1940s-1950s, Administrative Behavior, 1947, p. 198.

“The world you perceive is drastically simplified model of the real world.”

Herbert A. Simon book Administrative Behavior

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

“The usefulness of the models in constructing a testable theory of the process is severely limited by the quickly increasing number of parameters which must be estimated in order to compare the predictions of the models with empirical results.”

Anatol Rapoport (1911–2007) Russian-born American mathematical psychologist

Source: 1960s, Prisoner's dilemma: A study in conflict and cooperation (1965), p. 150

“Economic man deals with the "real world" in all its complexity. Administrative man recognizes that the world he perceives is a drastic simplified model… He makes his choices using a simple picture of the situation that takes into account just a few of the factors that he regards as most relevant and crucial.”

Herbert A. Simon book Administrative Behavior

Source: 1940s-1950s, Administrative Behavior, 1947, p. xxix; As cited in: Jesper Simonsen (1994) Administrative Behavior: How Organizations can be Understood in Terms of Decision Processes http://jespersimonsen.dk/Downloads/Simon-introduction.pdf. Roskilde Universitet.

“As conceived in this book, economics is the science of rational choice in a world─our world─in which resources are limited in relation to human wants. The task of economics, so defined, is to explore the implications of assuming that man is a rational maximizer of his ends in life, his satisfactions─what we shall call his “self-interest.” Rational maximization should not be confused with conscious calculation. Economics is not a thoery about consciousness. Behavior is rational when it conforms to the model of rational choice, whatever the state of mind of the chooser.(…) Nor is perfect rationality assumed; rational-choice thoery allows us to assume that rationality is “bounded” because of human cognitive limitations, although another way to think of those limitations is as costs of absorbing and using information.”

Richard A. Posner (1939) United States federal judge

Source: Economic Analysis of Law (7th ed., 2007), Ch. 1: The Nature of Economic Reasoning

“Now the salient characteristic of the decision tools employed in management science is that they have to be capable of actually making or recommending decisions, taking as their inputs the kinds of empirical data that are available in the real world, and performing only such computations as can reasonably be performed by existing desk calculators or, a little later electronic computers. For these domains, idealized models of optimizing entrepreneurs, equipped with complete certainty about the world - or, a worst, having full probability distributions for uncertain events - are of little use. Models have to be fashioned with an eye to practical computability, no matter how severe the approximations and simplifications that are thereby imposed on them…
The first is to retain optimization, but to simplify sufficiently so that the optimum (in the simplified world!) is computable. The second is to construct satisficing models that provide good enough decisions with reasonable costs of computation. By giving up optimization, a richer set of properties of the real world can be retained in the models… Neither approach, in general, dominates the other, and both have continued to co-exist in the world of management science.”

Herbert A. Simon (1916–2001) American political scientist, economist, sociologist, and psychologist

Source: 1960s-1970s, "Rational decision making in business organizations", Nobel Memorial Lecture 1978, p. 498; As cited in: Arjang A. Assad, ‎Saul I. Gass (2011) Profiles in Operations Research: Pioneers and Innovators. p. 260-1.

“The ontological concept of truth is in the centre of a logic which may serve as a model of pre- technological rationality. It is the rationality of a two-dimensional universe of discourse which, contrasts with the of thought and behavior that develop in the execution of the technological project.”

Herbert Marcuse book One-Dimensional Man

Source: One-Dimensional Man (1964), p. 130

“Constructs extraneous to the real world should be eliminated from the analysis model. They may be needed later during design, but not now. For example, CPU subroutine, process, algorithm, and interrupt are implementation constructs for most applications [and should be excluded from the analysis model]…”

James Rumbaugh (1947) Computer scientist, software engineer

Source: Object-oriented modeling and design (1990), p. 155; as cited in: Roger Chiang et al (2009, p. 165)

“The crackpot rationalism of free-market economics merely relies on an abstract model of how people "must" behave.”

Ellen Willis (1941–2006) writer, activist

Letter to The New York Times (27 February 1997)
Context: Whatever their limitations, Freud and Marx developed complex and subtle theories of human nature grounded in their observation of individual and social behavior. The crackpot rationalism of free-market economics merely relies on an abstract model of how people "must" behave.

“It is impossible for the behavior of a single, isolated individual to reach a high degree of rationality. The number of alternatives he must explore is so great, the information he would need to evaluate them so vast that even an approximation to objective rationality is hard to conceive. Individual choice takes place in rationality is hard to conceive… Actual behavior falls short in at least three ways, of objective rationality:”

Herbert A. Simon book Administrative Behavior

1940s-1950s, Administrative Behavior, 1947

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