Bounded rationality and hierarchical complexity: Two paths from Simon to ecological and evolutionary economics

This paper examines two paths by which the work of Herbert Simon has influenced the development of ecological and evolutionary economics: bounded rationality and hierarchical complexity. It argues that there is scope for further consideration of the implications of these ideas, particularly their inter-relation. This is illustrated through some recent ideas on the co-evolution of technologies and institutions. This is related to understanding transitions of technological systems, and how these might be steered or modulated towards greater sustainability.