An Empirically-Based Microeconomics

Best-selling author and Nobel Laureate, Professor Herbert Simon traces the development and future of microeconomics.

Herbert Simon is one of the most distinguished living economists, and was awarded the Nobel Prize for Economics in 1978 for his work at the intersection of economics and psychology. In his Mattioli Lectures, Professor Simon traces the evolution of microeconomics and assesses the possibilities for its future development.In his Mattioli Lectures, Nobel Laureate Professor Herbert A. Simon directs attention to the kinds of empirical research that are necessary for progress in microeconomics. He traces the development of neoclassical economic theory and its gradual retreat from empiricism to abstraction. He then discusses the importance of business firms to the economic system, and the need for a thoroughly empirical understanding of how organisations work and reach their decisions. Finally, he examines innovative approaches to empirical research, including experimental economics, observational methods for studying economic behaviour, and the kinds of simulation models that are needed to interpret decision process. A round-table discussion of these issues follows; the participants, in addition to Professor Simon, are Professors Claudio Dematte, Massimo Egidi, Richard M. Goodwin, Robert Marris, Aldo Montesano and Riccardo Viale.