How did Simon's work change economic theory?
My work challenged the prevailing assumption of perfect rationality in economic models. By observing actual human behavior, particularly within organizations, I saw that decision-makers rarely had all the information or the processing power to identify the single best course of action. My models, therefore, sought to provide a more realistic depiction of economic agents, emphasizing satisficing and the cognitive processes involved in problem-solving. This influenced fields beyond economics, including psychology and management science.
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