Where is Bounded Rationality From?

Abstract

IntroductionHerbert A. Simon, the author of Administrative Behavior (Simon, 1947, 1957, 1976, 1997), was born on June 15, 1916 and died on February 9, 2001. In 1978, he received the Nobel Memorial Prize in Economic Sciences for his pioneering research into the decision-making process within economic organizations. Administrative Behavior is one of his key contributions and has four versions: the 1947 edition (1st edition); the 1957 edition (2nd edition); the 1976 edition (3rd edition), published two years before he received the Nobel Prize in Economics; and the 1997 edition (4th edition), published four years before his death. fourth edition (Simon, 1997) calls a tripartite organization in referring to the third edition (Simon, 1976) with labels of lengthy introduction, text, and reprints of recent articles (Simon, 1997, p. viii). Using this tripartite organization, we establish the relationship among the editions (Table 1).The book size of the fourth edition is much larger and uses a different type of paper. With the exception of some minor portions, the first edition through the third edition include the exact same content as that in the original with identical page numbers on each page. However, even with the successive publishing of the three editions, the books have a cumulative increase of illegible print.1 In fact, the third edition maintains even the printing irregularities of the second edition to the extent that the third edition seems like an exact replica of the second. In reality, the second edition itself may be an exact replica of the first edition.2Bounded Rationality Does Not Exist in the Original TextAlthough has become such a widespread concept that even the mere mention of the name Simon calls the phrase to mind, this particular phrase does not appear even once in the original of Administrative Behavior. However, it does appear for the first time in the Introduction3 of the third edition in two locations, on pages xxxi and xxxiii. In spite of this, the index of the third edition includes the subheading bounded under the heading rationality (Simon, 1976, p. 363). In addition to the Introduction, the following three locations from the original are cited as sections that have the exact same wording as those in the first and second editions (equivalent to Part I in the 3rd edition).(I) The diagnosis of administrative situation segment in the An approach to administrative theory section of Chapter 2 (Simon, 1976, pp. 38-41).(II) first three paragraphs in the The limits of section in Chapter 5 (Simon, 1976, pp. 80-81).(III) Lessons for administrative theory section in Chapter 11 (Simon, 1976, pp. 240-244).The term bounded neither exists in these segments nor does it appear under the heading rationality (Simon, 1947, p. 258, 1957, p. 258) in the index of the first and second editions. Furthermore, it appears that the segments (I), (II), and (III) on pages 45-47, 93-92, and 322-325, respectively, have been omitted from the indexed locations for bounded in the index of the fourth edition. Even in the fourth edition, sections (I), (II), and (III) have the same wording,4 which clearly does not include the term bounded rationality. Hence, its omission is of no surprise.5 In sum, the term bounded does not appear at all in the text of Administrative Behavior from the first to the fourth editions.Rationality in Administrative BehaviorAt this juncture, a closer examination of the indexed content in Administrative Behavior under bounded is in order. As previously noted, with the exception of some minor portions, the first edition through the third edition have the exact same content and page numbering as those in the text. Hence, only the page numbers are referenced except for the Introduction. …