AbstractThe award of the Nobel Prize in Economics to a Professor of Computer Sciences and Psychology is surprising but refreshing. Unlike many economists, Simon is more concerned with how decisions are made than withwhatdecisions are made. His writings, although academic and theoretical, are concerned with the real world and are of practical value to the administrator. He is willing to accept evidence from any relevant source and has ranged widely over not only the disciplines of the social sciences but also the philosophies. Simon is well aware of the value of quantitative methods, but remains convinced of the great importance of value judgements in decision‐making. In view of the trends in modern society towards greater concern with aspects of welfare which are difficult to quantify, and the growing importance of the public sector, Simon's work is highly relevant to our times. It is in the best traditions ofpoliticaleconomy, and is not remote from realit