Herbert Simon's Nobel Prize
Simon received the economics prize for research into decision-making within organisations and for the notion of bounded rationality.
Why it matters
The idea that rational action is satisfactory action under limited time and data reached AI and economics from one source.
Bounded rationality holds that an agent does not optimise but stops at the first option good enough, because the resources for search are finite. The same thesis underlies the heuristic search in Logic Theorist and GPS. Simon is a rare holder of both a Nobel Prize and a Turing Award, the latter shared with Newell in 1975.