What concept, developed by Herbert Simon, was considered to be pioneering research into the decision-making process within economic organizations and led to Simon's winning of the 1978 Nobel Prize in economics?
A) evidence-based management
B) political decision making
C) bounded rationality
D) three-phase process of creativity

Question

Quizplus · Accepted Answer

Herbert Simon's concept of bounded rationality was considered pioneering research into the decision-making process within economic organizations and led him to win the 1978 Nobel Prize in economics. Bounded rationality refers to the idea that individuals are limited in their decision-making abilities due to factors such as incomplete information, cognitive biases, and time constraints. This concept challenged the previously held assumption that individuals always make rational and optimal decisions, and has had significant implications for fields such as organizational behavior and management.

What Concept, Developed by Herbert Simon, Was Considered to Be