Polymath; Nobel Memorial Prize in Economic Sciences, 1978; Turing Award, 1975

Herbert Simon

Simon showed that people and organisations have bounded rationality: rather than finding the best option, they search until they find one that is good enough.

Essential reading: Administrative Behavior
“Rational Choice and the Structure of the Environment” (1956)
Models in this guide: 1

No. 013Ways of Thinking
Satisficing
With limited time, information and attention, set a clear bar for good enough and take the first option that meets it, instead of searching for the best.

Satisficing