Herbert Simon (Decision Theory)

Herbert Simon was a pioneering thinker in decision theory who studied how people make choices. He introduced the idea of "bounded rationality," meaning that individuals aim to make good decisions but are limited by their knowledge, time, and cognitive abilities. Instead of seeking the perfect solution, people often settle for a satisficing option—good enough under the circumstances. Simon's work helps us understand real-world decision-making, highlighting that optimization is often impractical, so people use strategies that balance effort and benefit to make effective choices efficiently.