Abstract
The way in which bounded rationality enters contemporary organizational economics theorizing is examined. It is argued that, as it is being used, bounded rationality is neither necessary nor sufficient for producing the results of organizational economics. It is at best a rhetorical device, used for the purpose of loosely explaining incomplete contracts. However, it is possible to incorporate much richer notions of bounded rationality, founded on research in cognitive
psychology, and to illuminate the study of economic organization by means of such notions. A number of examples are provided.
psychology, and to illuminate the study of economic organization by means of such notions. A number of examples are provided.
| Original language | English |
|---|---|
| Place of Publication | Frederiksberg |
| Publisher | DRUID - Danish Research Unit for Industrial Dynamics |
| Edition | 3rd revision |
| Number of pages | 24 |
| ISBN (Print) | 8778731127 |
| Publication status | Published - 2001 |
| Series | DRUID Working Paper |
|---|---|
| Number | 01-13 |
Cite this
Foss, N. J. (2001). Bounded Rationality in the Economics of Organization: Present Use and (Some)Future Possibilities. (3rd revision ed.) DRUID - Danish Research Unit for Industrial Dynamics. DRUID Working Paper, No. 01-13