“Rationality requires a choice among all possible alternative behaviors. In actual behavior, only a very few of all these possible alternatives come to mind.”

—  Herbert A. Simon , book Administrative Behavior

Source: 1940s-1950s, Administrative Behavior, 1947, p. 79; As cited in: Terry Winograd, ‎Fernando Flores (1986) Understanding Computers and Cognition: A New Foundation for Design. p. 21.

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Herbert A. Simon 58
American political scientist, economist, sociologist, and p… 1916–2001

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“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 (1916–2001) American political scientist, economist, sociologist, and psychologist

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“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.

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“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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“Possibilities that fail to get realized are, for determinism, pure illusions: they never were possibilities at all. There is nothing inchoate, it says, about this universe of ours, all that was or is or shall be actual having been from eternity virtually there. The cloud of alternatives our minds escort this mass of actuality withal is a cloud of sheer deceptions, to which 'impossibilities' is the only name that rightfully belongs.”

William James (1842–1910) American philosopher, psychologist, and pragmatist

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“Language… is a range of possibilities, and an open end set of options in behavior that are available to the individual in his existence as social man. The context of culture is the environment of any particular selection that is made within them… The context of culture defines the potential, the range of possibilities that are open. The actual choice among these possibilities takes place within a given context of situation.”

Michael Halliday (1925–2018) Australian linguist

Source: 1970s and later, Explorations in the functions of language, 1973, p. 49 cited in: William O. Beeman (1986) Language, Status, and Power in Iran. p. 65.

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“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 (1916–2001) American political scientist, economist, sociologist, and psychologist

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

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“The stronghold of the determinist argument is the antipathy to the idea of chance…This notion of alternative possibility, this admission that any one of several things may come to pass is, after all, only a roundabout name for chance.”

William James (1842–1910) American philosopher, psychologist, and pragmatist

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Herbert A. Simon photo

“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.

“Barnard comes close to joining Roethlisberger and Dickson in their assumption that management behavior is mainly rational and workers' behavior nonrational.”

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“Economics is a science which studies human behavior as a relationship between ends and scarce means which have alternative uses.”

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An Essay on the nature and significance of Economic Science (1932), Chapter I: The Subject Matter of Economics
Context: The economist studies the disposal of scarce means. He is interested in the way different degrees of scarcity of different goods give rise to different ratios of valuation between them, and he is interested in the way in which changes in conditions of scarcity, whether coming from changes in ends or changes in means—from the demand side or the supply side—affect these ratios. Economics is a science which studies human behavior as a relationship between ends and scarce means which have alternative uses.

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