Herbert A. Simon: Nobel Prize in Economic Sciences, 1978 |
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Authors: | Leahey Thomas H |
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Affiliation: | Virginia Commonwealth University, Richmond, VA 23284, USA. tleahey@mail1.vcu.edu |
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Abstract: | In 1978, Herbert A. Simon won the Nobel Prize in Economic Sciences, the same Nobel won by Daniel Kahneman in 2002. Simon's work in fact paved the way for Kahneman's Nobel. Although trained in political science and economics rather than psychology, Simon applied psychological ideas to economic theorizing. Classical and neoclassical economic theories assume that people are perfectly rational and strive to optimize economic outcomes. Simon argued that human rationality is constrained, not perfect, and that people seek satisfactory rather than ideal outcomes. Despite his Nobel, Simon felt isolated in economics and ultimately moved into psychology. Nevertheless, his ideas percolated through the economic community, so that Kahneman, whose research advanced Simon's broad perspective, could be the psychologist who won the Nobel in economics. |
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