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" "Decision theory can be pursued not only for the purposes of building foundations for political economy, or of understanding and explaining phenomena that are in themselves intrinsically interesting, but also for the purpose of offering direct advice to business and governmental decision makers. For reasons not clear to me, this territory was very sparsely settled prior to World War II. Such inhabitants as it had were mainly industrial engineers, students of public administration, and specialists in business functions, none of whom especially identified themselves with the economic sciences. Prominent pioneers included the mathematician, Charles Babbage, inventor of the digital computer, the engineer, Frederick Taylor and the administrator, Henri Fayol.
During World War II, this territory, almost abandoned, was rediscovered by scientists, mathematicians, and statisticians concerned with military management and logistics, and was renamed “operations research” or “operations analysis.” So remote were the operations researchers from the social science community that economists wishing to enter the territory had to establish their own colony, which they called “management science”.
Herbert Alexander Simon (June 15, 1916 – February 9, 2001) was an American political scientist whose research ranged across the fields of cognitive psychology, computer science, public administration, economics, management, philosophy of science and sociology and was a professor, most notably, at Carnegie Mellon University. With almost a thousand often very highly cited publications he is one of the most influential social scientists of the 20th century.
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If we want a theory explaining how people play billiards, we do not want a theory of perfect billiard balls; we want a theory of what heuristics a human billiard player uses in order to plan and make a (often not quite accurate) shot. These heuristics and actions do not involve solving the differential equations of the billiard board; they involve rules of thumb and it is these practice guides to action we are trying to discover in order to explain the behavior.
By public administration is meant, in common usage, the activities of the executive branches of national, state, and local governments; independent boards and commissions set up by the congress and state legislatures; government corporations, and certain agencies of a specialized character. Specifically excluded are judicial and legislative agencies within the government and nongovernmental administration.
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It is impossible for the behavior of a single, isolated individual to reach a high degree of rationality. The number of alternatives he must explore is so great, the information he would need to evaluate them so vast that even an approximation to objective rationality is hard to conceive. Individual choice takes place in rationality is hard to conceive... Actual behavior falls short in at least three ways, of objective rationality: