Administrative Behavior
Quick Summary
Herbert A. Simon's influential book, Administrative Behavior (1947), challenges traditional economic models by introducing the concept of "satisficing". This theory posits that decision-makers aim for acceptable outcomes rather than solely maximizing profits, acknowledging the multiple factors influencing choices. Simon argued that human decision-making exhibits "bounded rationality," meaning individuals operate with imperfect information and do not evaluate all possible alternatives. Instead, they choose the first satisfactory option they encounter, influenced by psychological aspects and contextual limitations. This contrasts with purely rational decision-making, which assumes perfect information and optimization.123
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