“Models of bounded rationality describe how a judgement or decision is reached (that is, the heuristic processes or proximal mechanisms) rather than merely the outcome of the decision, and they describe the class of environments in which these heuristics will succeed or fail.”

— Reinhard Selten

Gerd Gigerenzer and Reinhard Selten eds. Bounded Rationality: The Adaptive Toolbox. MIT Press, Cambridge MA. (2001), p. 4

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Reinhard Selten6

German economist 1930–2016

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“Models of bounded rationality describe how a judgement or decision is reached (that is, the heuristic processes or proximal mechanisms) rather than merely the outcome of the decision, and they describe the class of environments in which these heuristics will succeed or fail.”

Gerd Gigerenzer (1947) German psychologist

Gerd Gigerenzer and Reinhard Selten eds. Bounded Rationality: The Adaptive Toolbox. MIT Press, Cambridge MA. (2001), p. 4.

“The classical support for as-if models in the social sciences stems from the economist Milton Friedman (1953), who, like the psychologist B. F. Skinner, saw little value in modeling cognitive processes. In contrast, our aim is to understand actual decision processes, not only the outcomes. There is a good reason for this. Without modeling the cognitive blade of Simon's scissors, it is utterly impossible to determine in what environments heuristics succeed, that is, their ecological rationality.”

Gerd Gigerenzer Heuristics

Gerd Gigerenzer, Ralph Hertwig, and Thorsten Pachur, Heuristics: The Foundations of Adaptive Behavior, 2015.

“The Decision Theory School : Another approach to management theory, undertaken by a growing and scholarly group, might be referred to as the decision theory school. This group concentrates on rational approach to decision-the selection from among possible alternatives of a course of action or of an idea. The approach of this school may be to deal with the decision itself, or to the persons or organizational group making the decision, or to an analysis of the decision process. Some limit themselves fairly much to the economic rationale of the decision, while others regard anything which happens in an enterprise the subject of their analysis, and still others expand decision theory to cover the psychological and sociological aspect and environment of decisions and decision-makers.”

Harold Koontz (1909–1984)

Source: "The Management Theory Jungle," 1961, p. 180

“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.

“The bounded rationality of each actor in a system may not lead to decisions that further the welfare of the system as a whole.”

Donella Meadows (1941–2001) American environmental scientist, teacher, and writer

Pages 188-191.
Thinking in systems: A Primer (2008)

“Arrow’s Impossibility Theorem is quite surprising. It shows that three very plausible and desirable features of a social decision mechanism are inconsistent with democracy: there is no “perfect” way to make social decisions. There is no perfect way to “aggregate” individual preferences to make one social preference. If we want to find a way to aggregate individual preferences to form social preferences, we will have to give up one of the properties of a social decision mechanism described in Arrow’s theorem.”

Hal Varian (1947) American economist

Hal R. Varian, Microeconomics: A Modern Approach, Chapter 33. Welfare, 2002

“Unless there is an obvious reason to do otherwise, most of use passively accept decision problems as they are framed and therefore rarely have an opportunity to discover the extent to which our preferences are frame-bound rather than reality-bound.”

Daniel Kahneman book Thinking, Fast and Slow

Source: Thinking, Fast and Slow (2011), Chapter 34, "Frames and reality", page 367 (ISBN 9780141033570).

“(Game theory is) essentially a structural theory. It uncovers the logical structure of a great variety of conflict situations and describes this structure in mathematical terms. Sometimes the logical structure of a conflict situation admits rational decisions; sometimes it does not.”

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

Source: 1960s, Prisoner's dilemma: A study in conflict and cooperation (1965), p. 196

“I would rather have a wrong decision made than no decision at all.”

Robert S. McNamara (1916–2009) American businessman and Secretary of Defense

Quoted in: Charles A. Stevenson (2006), SECDEF: The Nearly Impossible Job of Secretary of Defense http://books.google.com/books?id=2NXbS5AG_8QC&pg=PA28, p. 28

“Decision theory, similarly analyzing rational choices, within human organizations, based upon examination of a given situation and its possible outcomes.”

Ludwig von Bertalanffy (1901–1972) austrian biologist and philosopher

General System Theory (1968), 4. Advances in General Systems Theory

“Models of bounded rationality describe how a judgement or decision is reached (that is, the heuristic processes or proximal mechanisms) rather than merely the outcome of the decision, and they describe the class of environments in which these heuristics will succeed or fail.”

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