A PYMNTS Company

A Behavioral Model of Rational Choice

By  |  April 1, 2010

Cecilia Chaing, Lindsay McSweeney, Apr 01, 2010

A Behavioral Model of Rational Choice is reprinted here as it was published in 1955. In this paper, Simon writes that “the distance is so great between our present psychological knowledge of the learning and choice processes and the kinds of knowledge needed for economic administrative theory that a marking stone placed halfway between might help travelers from both directions to keep to their courses.” In his career Simon did far more than keep travelers in behavioral economics and organizational theory on course; he designed and engineered much of the course(s) they would follow.