Herbert A. Simon and Organizational Economics

Cuadernos de Economía, Vol. 26, No. 46, 2007

31 Pages Posted: 7 Dec 2007


This article evaluates Herbert A. Simon's contribution to organization theory, placing special emphasis on the criterion of bounded rationality. Simon's criticism of the orthodox version of organizational bureaucracy is interpreted and his analysis is extended to institutional economics. One of Simon's main achievements in organizational theory consisted of analytically evaluating the psychology of individual and collective behaviour, thereby opening up the way for future investigation by D. Kahneman and T. Schelling.

Keywords: Herbert A. Simon, organization, limited rationality, decision theory, institutional economics

JEL Classification: A11, B52, D23, D79

Suggested Citation

Estrada Gallego, Fernando, Herbert A. Simon and Organizational Economics. Cuadernos de Economía, Vol. 26, No. 46, 2007, Available at SSRN: https://ssrn.com/abstract=1054801

Fernando Estrada Gallego (Contact Author)

Universidad EAFIT ( email )

Carrera 49 N° 7 sur – 50
Bogotá, Antioquia 00000

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