Carnegie School

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The "Carnegie School" was a so-called "Freshwater" economics intellectual movement in the 1950s and 1960s based at Carnegie Mellon University and led by Herbert A. Simon, James March, and Richard Cyert.[1][2]

The focus of the research was on organizational behavior and the application of decision analysis, management science, and psychology as well as theories such as bounded rationality to the understanding of the organization and the firm.

Organizations, Administrative Behavior, and A Behavioral Theory of the Firm were three highly influential works done by researchers at the Carnegie School as well as work by Victor Vroom, Oliver E. Williamson and other faculty and graduate students.

The interdisciplinary approach featured faculty at Carnegie Mellon's modern departments of economics, business, public policy, computer science, psychology, statistics, and social and decision sciences.

Disagreement - The so-called freshwater school of economics was monetarist, efficient markets and neo-classical. The Carnegie school described here is an institutional/evolutionary school of thought which is not freshwater by any means. The Carnegie school was built on Herb Simon's concept of bounded rationality which is an important cornerstone for institutional and evolutionary economics. The Cyert and March book, A Behavioral Theory of the Firm, is a towering achievement. Please see the descriptions of evolutionary and institutional schools of economic thought. I wish somebody knowledgeable in institutional/evolutionary economics would clean up these wiki pages on institutional/evolutionary/Carnegie schools of thought. They are essentially one school of thought.


  1. ^ Raymond Augustine Bauer, Kenneth J. Gergen (1968). The study of policy formation. National Planning Association. p.115.
  2. ^ Jens Beckert, Milan Zafirovski (2006). International encyclopedia of economic sociology. p.48