Around 1958, I became aware of H. A. Simon's seminal papers on bounded rationality and was immediately convinced by his arguments. I tried to construct a theory of boundedly rational multigoal decision making. Together with Heinz Sauermann, I worked out an "aspiration adaptation theory of the firm" which was published as a journal article in 1962... More and more I came to the conclusion that purely speculative approaches like that of our paper of 1962 are of limited value. The structure of boundedly rational economic behavior cannot be invented in the armchair, it must be explored experimentally.
Reinhard SeltenRelated topics
adaptation article came construct journal limited making paper seminal try valueRelated quotes
We have, over the centuries, devised a management structure for running things, whether firms or whole countries. This structure depends absolutely on the limitations of the human hand, eye, and brain. The discoveries of management cybernetics, coupled with the techniques of operational research and with the new technology of automation, make possible a new way of running things which is not so limited. Yet we insist on retaining the original structures and automating them. In so doing, we enshrine in steel, glass, and semiconductors those very limitations of hand, eye, and brain that the computer was invented precisely to transcend.
Anthony Stafford Beer
Not only is it possible to devise complete models of the economy on hypotheses other than rationality, but in fact virtually every practical theory of macroeconomics is partly so based. The price- and wage- rigidity elements of Keynesian theory are hard to fit into a rational framework, though some valiant efforts have been made. ... But if the Keynesian model is a natural target of criticism by the upholders of universal rationality, it must be added that monetarism is no better. I know of no serious derivation of the demand for money from a rational optimization. ... The use of rationality in these arguments is ritualistic, not essential.
Kenneth Arrow
The theory of games was first formalised by Von Neumann & Morgenstern (1953) in reference to human economic behaviour. Since that time, the theory has undergone extensive development... Sensibly enough, a central assumption of classical game theory is that the players will behave rationally, and according to some criterion of self-interest. Such an assumption would clearly be out of place in an evolutionary context. Instead, the criterion of rationality is replaced by that of population dynamics and stability, and the criterion of self-interest by Darwinian fitness.
John Maynard Smith
Man's position in the world is defined by the fact that in every dimension of his being and behavior he finds himself at every moment between two boundaries. This condition appears as the formal structure of our existence, filled always with different contents in life's diverse provinces, activities, and destinies. We feel that the content and value of every hour stands between a higher and a lower; every thought between a wiser and a more foolish; every possession between a more extended and a more limited; every deed between a greater and a lesser measure of meaning, adequacy, and morality.
Georg Simmel
And it came to me then. That we were wonderful traveling companions but in the end no more than lonely lumps of metal in their own separate orbits. From far off they look like beautiful shooting stars, but in reality they're nothing more than prisons, where each of us is locked up alone, going nowhere. When the orbits of these two satellites of ours happened to cross paths, we could be together. Maybe even open our hearts to each other. But that was only for the briefest moment. In the next instant we'd be in absolute solitude. Until we burned up and became nothing.
Haruki Murakami