Theories of Decision-Making in Economics and Behavioural Science

  • Herbert A. Simon


Recent years have seen important new explorations along the boundaries between economics and psychology. For the economist, the immediate question about these developments is whether they include new advances in psychology that can fruitfully be applied to economics. But the psychologist will also raise the converse question—whether there are developments in economic theory and observation that have implications for the central core of psychology. If economics is able to find verifiable and verified generalisations about human economic behaviour, then these generalisations must have a place in the more general theories of human behaviour to which psychology and sociology aspire. Influence will run both ways.2


Aspiration Level Imperfect Competition Certainty Equivalent Business Firm Perfect Competition 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.


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Copyright information

© The Royal Economic Society and the American Economic Association 1966

Authors and Affiliations

  • Herbert A. Simon
    • 1
  1. 1.Carnegie Institute of TechnologyUSA

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