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Lex Phonographica 10: Herbert A. Simon, Rationality in Psychology and Economics (1986)

Season 1, Ep. 720

In 1986, the American economist, political scientist and cognitive psychologist Herbert Simon published "Rationality in Psychology and Economics" in the Journal of Business. Continuing with Simon's critique of neoclassical assumptions of economic behavior, Simon asserts that the standard of rationality used in neoclassical economic analysis is insufficient to analyze the real world. In particular, he critiques the over-use of assumptions in the works of Gary Becker and others, that he contends makes economic science unreplicable and ascientific. "Research into the decision-making process within economic organizations" won Simon the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel in 1978.

This article was read by Luce Nguyen, who is on Twitter at @NguyenLuce.

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