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The logic of Heuristic Decision Making - Herbert Simon 1977
The logic of Heuristic Decision Making - Herbert Simon 1977
[tRescher (ed.), The Logic of Decision and Action, Pittsburgh: University of Pittsburgh
Press, 1967, pp. 1-20].
No different brand of logic is used in normative economics from that used in positive
economics. On the contrary, the logic employed is the standard logic of declarative
statements.
Imperatives enter the normative systems through rules of correspondence that permit
commands to be converted into existential statements, and existential statements into
commands. The conversion process always takes place in the context of a complete
model, with the command variables and environmental variables designated, the state of
knowledge about the latter specified, and the causal relations among variables
determined. In such a context, commands that bind one or more of the command
variables can be converted to the corresponding declarative statements; while declarative
statements that can be solved for command variables, but are not identities in those
variables, can be converted to commands by binding the command.variables with the
command operator.'
1. PHASES OF DECISION
The decision models of classical economics do not recognize the need either
to identify the occasions of action or to devise courses of action. These
models presuppose that there is a well-defined criterion for choosing among