Herbert Simon quotes

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Herbert Alexander Simon. (1916 - 2001). American economist, political scientist, computer scientist, and educator whose primary interest was decision-making within organizations and is best known for the theories of "bounded rationality" and "satisficing".

Operational Research Restrictions

“The powerful algorithms associated with OR impose a strong mathematical structure on the decision problem. Their power is bought at the cost of shaping and squeezing the real-world problem to fit their computational requirements.”

Artificial Intelligence Satisfice

“The alternative methods provided by AI, most often in the form of heuristic search (selective search using rules of thumb), find decisions that are 'good enough', that satisfice.”

Artificial Intelligence Judgment

“So-called judgment" turns out to be mainly a non-numerical heuristic search that draws upon information stored in large expert memories.”

Human Limitations

“What a person cannot do he or she will not do, no matter how strong the urge to do it.”

Satisficer

“The real economic actor is in fact a satisficer, a person who accepts 'good enough' alternatives, not because less is preferred to more but because there is no choice.”

Psychology of Choice

“Research findings on the psychology of choice, indicate some properties a thermometer of satisfaction should have. First, unlike the utility function, it is not limited to positive values, but has a zero point (of minimal contentment). Above zero, various degrees of satisfaction are experienced, and below zero, various degrees of dissatisfaction. Second, if periodic readings are taken of people in relatively stable life circumstances, we only occasionally find temperatures very far from zero in either direction, and the divergent measurements tend to regress over time back toward the zero mark. Most people consistently register either slightly below zero (mild discontent) or a little above (moderate satisfaction). To deal with these phenomena, psychology employs the concept of aspiration level... Aspiration levels provide a computational mechanism for satisficing.”

Markets and Coordination

“Markets aim to coordinate the decisions and behavior of multitudes of economic actors to guarantee that the quantity of brussels sprouts shipped to market bears some reasonable relation to the quantity that consumers will buy and eat, and that the price at which brussels sprouts can be sold bears a reasonable relation to the cost of producing them. Any society that is not a subsistence economy, but has substantial specialization and division of labor, needs mechanisms to perform this coordinative function. Markets are only one, however, among the spectrum of mechanisms of coordination on which any society relies. [central planning, bargaining and negotiation, business, government, education, balloting procedures]”

Markets and Voting

“We ordinarily describe capitalist societies as depending mostly on markets for coordination and socialist societies as depending mostly on hierarchic organizations and planning, but this is a gross oversimplification, for it ignores the uses of voting in democratic societies of either kind, and it ignores the great importance of large organizations in modern 'market' societies.”

Organization and Market Economy

“The economic units in capitalist societies are mostly business firms, which are themselves hierarchic organizations, some of enormous size, that make almost negligible use of markets in their internal functioning. Roughly eighty percent of the human economic activity in the American economy, usually regarded as almost the epitome of a "market" economy, takes place in the internal environments of business and other organizations and not in the external, between-organization environments of markets. To avoid misunderstanding, it would be appropriate to call such a society an organization-&-market economy; for in order to give an account of it we have to pay as much attention to organizations as to markets.”

Invisible Hand

“In examining the processes of social coordination, economics has given top billing sometimes almost exclusive billing to the market mechanism. It is indeed a remarkable mechanism... The optimality theorems stretch credibility, so far as real-world markets are concerned, because they require substantive rationality of the kinds we found implausible in our examination of the theory of the firm. Markets populated by consumers and producers who satisfice instead of optimizing do not meet the conditions on which the theorems rest.”

Game Theory

“Game theory's most valuable contribution has been to show that rationality is effectively undefinable when competitive actors have unlimited computational capabilities for outguessing each other, but that the problem does not arise as acutely in a world, like the real world, of bounded rationality.”

Decentralization

“Business organizations, like markets, are vast distributed computers whose decision processes are substantially decentralized.”

Uncertainty

“In facing uncertainty, standardization and coordination, achieved through agreed-upon assumptions and specifications, may be more effective than prediction. Uncertainty calls for flexibility.”

Bounded Rationality

“In a world of bounded rationality there are several ways to magnify the computing capabilities of individual human beings and enhance the possibilities of their collective survival and prosperity. With the combined use of markets and administrative hierarchies, the human species has enormously increased its capabilities for specialization and division of work.”

Intuition

“Intuition is a genuine enough phenomenon which can be explained rather simply: most intuitive leaps are acts of recognition.”

Computer Programming as Data Structures

“When we write a computer program in any language except machine language, we are really not writing down processes but data structures. These data structures are then interpreted or compiled into processes, that is, into machine-language instructions that the computer can understand and execute. Nevertheless, for most purposes, it is convenient for us simply to ignore the translation step and to treat the computer programs in higher-level languages as representing processes.”

Problem Solving and Understanding

“Efforts to solve a problem must be preceded by efforts to understand it.”

Understanding Problems

“Understanding problems in domains that have rich semantics requires prior knowledge of the domain.”

Engineering and Design

“Historically and traditionally, it has been the task of the science disciplines to teach about natural things: how they are and how they work. It has been the task of engineering schools to teach about artificial things: how to make artifacts that have desired properties and how to design.”

Design and Analysis

“In view of the key role of design in professional activity, it is ironic that in this century the natural sciences almost drove the sciences of the artificial from professional school curricula, a development that peaked about two or three decades after the Second World War. Engineering schools gradually became schools of physics and mathematics; medical schools became schools of biological science; business schools became schools of finite mathematics. The use of adjectives like 'applied' concealed, but did not change, the fact. It simply meant that in the professional schools those topics were selected from mathematics and the natural sciences for emphasis which were thought to be most nearly relevant to professional practice. It did not mean that design continued to be taught, as distinguished from analysis.”

Loss of Design Damage

“The damage to professional competence caused by the loss of design from professional curricula gradually gained recognition in engineering and medicine and to a lesser extent in business.”


How Things Ought to Be

“The natural sciences are concerned with how things are... Design, on the other hand, is concerned with how things ought to be.”

Long Definition of Design

“The ‘inner environment' of the design problem is represented by a set of given alternatives of action. The alternatives may be given in extenso: more commonly they are specified in terms of command variables that have defined domains. The ‘outer environment' is represented by a set of parameters, which may be known with certainty or only in terms of a probability distribution. The goals for adaptation of inner to outer environment are defined by a utility function a function, usually scalar, of the command variables and environmental parameters perhaps supplemented by a number of constraints (inequalities, say, between functions of the command variables and environmental parameters). The optimization problem is to find an admissible set of values of the command variables, compatible with the constraints, that maximize the utility function for the given values of the environmental parameters. (In the probabilistic case we might say, 'maximize the expected value of the utility function,' for instance, instead of 'maximize the utility function.')”

Not Just Optimization

“The subject of computational techniques need not be limited to optimization.”

Top Down or Bottom Up

“Alternatives are also open, in organizing the design process, as to how far development of possible subsystems will be carried before the overall coordinating design is developed in detail, or vice-versa, how far the overall design should be carried before various components, or possible components, are developed. These alternatives of design are familiar to architects. They are familiar also to composers, who must decide how far the architectonics of a musical structure will be evolved before some of the component musical themes and other elements have been invented. Computer programmers face the same choices, between working downward from executive routines to subroutines or upward from component subroutines to a coordinating executive.”

Solving via Representation

“Solving a problem simply means representing it so as to make the solution transparent.”

Data for Planning

“The quality of design is likely to depend heavily on the quality of the data available. The task is not to design without data but to incorporate assessments of the quality of the data, or its lack of quality, in the design process itself.”

Predictions and Design

“Since the consequences of design lie in the future, it would seem that forecasting is an unavoidable part of every design process. If that is true, it is cause for pessimism about design, for the record in forecasting even such 'simple' variables as population is dismal. If there is any way to design without forecasts, we should seize on it.”

Design without Final Goals

“In the discussion of discovery processes. We saw there that search guided by only the most general heuristics of ‘interestingness’ or novelty is a fully realizable activity. This kind of search, which provides the mechanism for scientific discovery, may also provide the most suitable model of the social design process.”

Design Paradox

“A paradoxical, but perhaps realistic, view of design goals is that their function is to motivate activity which in turn will generate new goals.”