John Muth, the initial proponent of the theory of rational expectations referred to in chapter 1, formulated the theory at Carnegie Tech and presented it explicitly as a response to Simon's accusation that economists presumed too much rationality in individuals and firms. The hypothesis of rational expectations "is based on exactly the opposite point of view" to Simon's, wrote Muth (1961, p. 316): "dynamic economic models do not assume enough rationality."

Donald MacKenzie, An Engine, Not a Camera, loc. 170