Herbert A. Simon won the 1978 Nobel Memorial Prize in Economic Sciences for his pioneering research into the decision-making process within economic organizations.
Simon challenged the idea that people and organizations always make fully rational choices after considering every possible alternative. He developed the concept of bounded rationality, arguing that limited information, time, and mental capacity shape real-world decisions. His research drew on economics, psychology, computer science, and organizational theory.
Simon also studied administrative behavior and artificial intelligence, making his work unusually interdisciplinary for an economics laureate. His prize was awarded to him alone in 1978. Ronald Coase won in 1991 for transaction costs and property rights, while Oliver Williamson shared the 2009 prize for economic governance.