Herbert Alexander Simon (June 15, 1916 – February 9, 2001) was an American scholar whose work influenced the fields of computer science, economics, and cognitive psychology. His primary research interest was decision-making within organizations and he is best known for the theories of "bounded rationality" and "satisficing". He and Allen Newell received the ACM Turing Award in 1975, and he received the Nobel Memorial Prize in Economic Sciences in 1978. His research was noted for its interdisciplinary nature, spanning the fields of cognitive science, computer science, public administration, management, and political science. He was at Carnegie Mellon University for most of his career, from 1949 to 2001, where he helped found the Carnegie Mellon School of Computer Science, one of the first such departments in the world. Notably, Simon was among the pioneers of several modern-day scientific domains such as artificial intelligence, information processing, decision-making, problem-solving, organization theory, and complex systems. He was among the earliest to analyze the architecture of complexity and to propose a preferential attachment mechanism to explain power law distributions.
Early life and education Herbert Alexander Simon was born in Milwaukee, Wisconsin, on June 15, 1916. Simon's father, Arthur Simon (1881–1948), was a Jewish electrical engineer who came to the United States from Germany in 1903 after earning his engineering degree at Technische Hochschule Darmstadt. An inventor, Arthur also was an independent patent attorney. Simon's mother, Edna Marguerite Merkel (1888–1969), was an accomplished pianist whose Jewish, Lutheran, and Catholic ancestors came from Braunschweig, Prague and Cologne. Simon's European ancestors were piano makers, goldsmiths, and vintners. Simon attended Milwaukee Public Schools, where he developed an interest in science and established himself as an atheist. While attending middle school, Simon wrote a letter to "the editor of the Milwaukee Journal defending the civil liberties of atheists". Simon's family introduced him to the idea that human behavior could be studied scientifically; his mother's younger brother, Harold Merkel (1892–1922), who studied economics at the University of Wisconsin under John R. Commons, became one of his earliest influences. Through Harold's books on economics and psychology, Simon discovered social science. Among his earliest influences, Simon cited Norman Angell for his book The Great Illusion and Henry George for his book Progress and Poverty. While attending high school, Simon joined the debate team, where he argued "from conviction, rather than cussedness" in favor of George's single tax. In 1933, Simon entered the University of Chicago, and, following his early influences, decided to study social science and mathematics. Simon was interested in studying biology but chose not to pursue the field because of his "color-blindness and awkwardness in the laboratory". At an early age, Simon learned he was color blind and discovered the external world is not the same as the perceived world. While in college, Simon focused on political science and economics. Simon's most important mentor was Henry Schultz, an econometrician and mathematical economist. Simon received both his B.A. (1936) and his Ph.D. (1943) in political science from the University of Chicago, where he studied under Harold Lasswell, Nicolas Rashevsky, Rudolf Carnap, Henry Schultz, and Charles Edward Merriam. After enrolling in a course on "Measuring Municipal Governments," Simon became a research assistant for Clarence Ridley, and the two co-authored Measuring Municipal Activities: A Survey of Suggested Criteria for Appraising Administration in 1938. Simon's studies led him to the field of organizational decision-making, which became the subject of his doctoral dissertation.
Career After receiving his undergraduate degree, Simon obtained a research assistantship in municipal administration that turned into the directorship of an operations research group at the University of California, Berkeley, where he worked from 1939 to 1942. By arrangement with the University of Chicago, during his years at Berkeley, he took his doctoral exams by mail and worked on his dissertation after hours. From 1942 to 1949, Simon was a professor of political science and also served as department chairman at Illinois Institute of Technology in Chicago. There, he began participating in the seminars held by the staff of the Cowles Commission who at that time included Trygve Haavelmo, Jacob Marschak, and Tjalling Koopmans. He thus began an in-depth study of economics in the area of institutionalism. Marschak brought Simon in to assist in the study he was currently undertaking with Sam Schurr of the "prospective economic effects of atomic energy".
From 1949 to 2001, Simon was a faculty member at Carnegie-Mellon University, in Pittsburgh, Pennsylvania. In 1949, Simon became a professor of administration and chairman of the Department of Industrial Management at Carnegie Institute of Technology ("Carnegie Tech"), which, in 1967, became Carnegie-Mellon University. Simon later also taught psychology and computer science in the same university, (occasionally visiting other universities).
Research Seeking to replace the highly simplified classical approach to economic modeling, Simon became best known for his theory of corporate decision in his book Administrative Behavior. In this book he based his concepts with an approach that recognized multiple factors that contribute to decision making. His organization and administration interest allowed him to not only serve three times as a university department chairman, but he also played a big part in the creation of the Economic Cooperation Administration in 1948; administrative team that administered aid to the Marshall Plan for the U.S. government, serving on President Lyndon Johnson's Science Advisory Committee, and also the National Academy of Sciences. Simon has made a great number of contributions to both economic analysis and applications. Because of this, his work can be found in a number of economic literary works, making contributions to areas such as mathematical economics including theorem-proving, human rationality, behavioral study of firms, theory of casual ordering, and the analysis of the parameter identification problem in econometrics.
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