The Political Scientist as an Economist: Decoding Bounded Rationality, AI (Artificial Intelligence), and Organizational Decision Making in the Works of Herbert A. Simon

Abstract

Herbert A. Simon’s theories of administration successfully bring together an understanding of how and why decisions are made in respective organizations. Moreover, throughout his significant works, Simon sought practical solutions to particular administrative and management problems — that is, he lectured on how to organize and put in place practical solutions for workers or individuals (in companies), while they make significant contributions to organizational goals, using his theory of bounded rationality. In this regard, this paper also tries to concisely present some of Simon’s thoughts and ideas (in specific and general ways) about the future of AI (Artificial Intelligence) in businesses. Simon died on February 9, 2001; but before his death, he made major theoretical ideas that provide us (today) with a fundamental way to study administrative management, while providing us with empirical observations and different patterns for understanding the future behavior of people or workers in different organizations and/or other social and political institutions. For his profound and important works, Herbert A. Simon, who was basically a political scientist, was awarded the 1978 Nobel Prize in Economics Sciences.