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For immediate release:
October 20, 2006

Acclaimed Carnegie Mellon Professor Awarded Herbert Simon Chair

George Loewenstein has been named the Herbert A. Simon Professor of Economics and Psychology.

PITTSBURGH—George Loewenstein, one of Carnegie Mellon University's most innovative researchers, has been named the Herbert A. Simon Professor of Economics and Psychology.

Loewenstein, who teaches in the Department of Social and Decision Sciences, is among the founding fathers of decision science, a field that was pioneered at Carnegie Mellon by the late Herbert A. Simon. Loewenstein's groundbreaking research examines the influence that emotions and other psychological factors have on economic decision-making.

"It's an amazing honor to be receiving the Herbert A. Simon Chair in Economics and Psychology. Among his astoundingly diverse accomplishments, Simon was a pioneer in the field of behavioral economics, and was the first psychologist to win the Nobel Prize in economics," Loewenstein said. "Simon was the reason why I dreamed of coming to Carnegie Mellon long before I ever knew it might actually be a possibility."

Most recently, Loewenstein has worked in the nascent field of neuroeconomics, which he helped to create and which investigates the mental and neural processes that drive economic decision-making. He has made major contributions in the analysis of intertemporal choice: the extent to which and reasons why we are prepared to defer some immediate benefit for a greater benefit at a later date. His other research interests include bargaining and negotiations, law and policy, and the role of emotion in "out of control" behaviors such as violent crime and drug addiction.

"George Loewenstein has built on the legacy of Herb Simon by bringing Carnegie Mellon to the forefront of the study of human decision-making. As an educator, George has sparked in his students the same passion that has made him such a dynamic researcher," said John Lehoczky, dean of the College of Humanities and Social Sciences.

Loewenstein received a bachelor's degree in economics from Brandeis University and earned a Ph.D. with distinction in economics from Yale University. He previously taught at the University of Chicago Graduate School of Business and has been at Carnegie Mellon since 1990. He currently teaches behavioral economics and empirical research methods.

"Over the last two decades, George has defined the frontiers of behavioral economics. His work has had a remarkable impact on our understanding of human decision-making, and continues to inspire and define a research agenda that embraces all of the critical elements of human behavior," said John H. Miller, head of the Department of Social and Decision Sciences.

The Herbert A. Simon Professorship was established through the generosity of Carnegie Mellon alumni Tod and Cindy Johnson. Tod Johnson, a life trustee of Carnegie Mellon, is a graduate of the Tepper School of Business, and his wife, Cindy, earned a degree from the College of Fine Arts. Tod Johnson leads The NPD Group, which helps Fortune 500 clients understand their global marketplaces by providing consumer and retail information for a wide range of consumer industries. He has played a prominent role in this field, serving as founding co-chairman of the Council on Marketing and Opinion Research and as a director and chairman of the Advertising Research Foundation. Tod Johnson is also widely recognized as an expert on brand loyalty, a subject on which he has regularly published since 1982. Cindy Johnson is a volunteer at the Neuberger Museum of Art and a supporter of the Guggenheim Museum in New York City. She is also chair of the board of St. Mary's Healthcare System for Children.

"We are pleased to be able to honor Herbert Simon's prodigious legacy to Carnegie Mellon through this endowed chair, and we are proud that a dynamic researcher like George Loewenstein has been selected as its first recipient," Tod Johnson said.

Herbert A. Simon, winner of the 1978 Nobel Prize in Economics, was one of Carnegie Mellon's most influential faculty members. During his 51-year tenure on the Carnegie Mellon faculty, he played key roles in the formation and development of the Graduate School of Industrial Administration (now the Tepper School of Business), the School of Computer Science and the Department of Psychology, shaping them into world-class institutions with his extraordinary vision. His influence across so many fields, fueled by a singular passion for human decision-making and problem-solving, set a standard for cross-disciplinary work that remains one of the hallmarks of Carnegie Mellon today.

With the study of organizational decision-making as his primary focus, Simon increasingly felt the need for a more adequate theory of human problem-solving than existed at the time. Around 1954, he and his colleague, Allen Newell, conceived the idea that the right way to study problem-solving was to simulate it with computer programs. Gradually, computer simulation of human cognition became his central research interest, which led to his and Newell's recognition as the fathers of artificial intelligence. Subsequently, 24 colleges and universities presented Simon with honorary doctorates. Newell-Simon Hall, which houses Carnegie Mellon's School of Computer Science, is named for Simon and Newell. An emeritus life trustee, Simon had been a member of the board since 1973. He remained very active at Carnegie Mellon until he died in 2001.

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