The Economics and Rationality of Organizations: the Contribution of Herbert A. Simon
No. 31 (2008-12-01)Author(s)
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Fernando Estrada
Abstract
This article evaluates Herbert A. Simons contribution to organization theory, placing special emphasis on the idea of bounded rationality. It interprets Simons criticism of the orthodox version of organizational bureaucracy and extends his analysis to the institutional economics. One of Simons main achievements in organizational theory was analytically evaluating individual and collective behavior, clearing the way for the future studies of D. Kahneman and T. Schelling.
Keywords:
Organizations, Herbert Simon, bounded rationality, decision theory, institutional economics
License
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