ABSTRACT
In his autobiography, Herbert Simon (1991: 250) summed up his ongoing critique of RE by saying how ironic it was that both his own theory of “bounded rationality and RE”, although totally “antithetical” were developed in the same institution – the Carnegie Tech Graduate School of Industrial Administration. Now, the Carnegie Tech research project was a direct “spin-off” of the Illinois expectations research project, as will be seen below. Between 1949, when the Illinois project was first discussed at the American Economic Association meetings by Hart, Modigliani, and Friedman, as noted above, and 1959, when Muth and Mills first gave their respective RE papers at the December 1959 meeting of the Econometric Society, there were a number of important expectations research projects conducted on a “formal” and “informal” basis in both the US and UK.
