Cognitive economics / Bernard Walliser.

Format:

Book

Author/Creator:

Walliser, Bernard.

Standardized Title:

Économie cognitive. English

Language:

English

French

Subjects (All):

Economics--Methodology.

Economics.

Economics--Psychological aspects.

Cognitive science.

Physical Description:

vii, 185 pages ; 24 cm

Place of Publication:

Berlin : Springer, [2008]

Summary:

As a manifestation of a 'cognitive turn' observable in all social sciences, Cognitive Economics is concerned with the beliefs and mental operations held by actors placed within a dynamical and strategic environment. It appears as a synthesis of an eductive research program, dealing with crossed expectations of actors, and an evolutionist research program on collective learning processes.

The book mainly aims at extending the framework of game theory in order to better fit the results of rapidly increasing laboratory experiments concerned with individual choices and collective interactions.

It also seeks to better explain some original economic phenomena involving boundedly rational agents in an institutional setting such as financial bubbles, job search or technological innovation.

Written in an informal way, the book is addressed to philosophers or cognitive scientists curious of how economics deals with cognition, as well as graduate students in economics eager to discover how economic science evolves.

Contents:

1 Structure of individual beliefs 9

1.1 Syntactical beliefs 10

1.2 Semantical beliefs 12

1.3 Link between syntax and semantics 14

1.4 Probabilistic beliefs 16

1.5 Syntactic properties of beliefs 18

1.6 Semantic properties of beliefs 21

1.7 Homo-hierarchical beliefs 23

1.8 Hetero-hierarchical beliefs 25

2 Change of individual beliefs 29

2.1 Contexts of belief change 30

2.2 Syntactic change 32

2.3 Semantic change 34

2.4 Probabilistic change 36

2.5 Iterated change 38

2.6 Change of hierarchical structures 41

2.7 Reasoning operations 43

2.8 Reasoning and belief revision 45

3 Decision-making as reasoning 49

3.1 Rational choice models 50

3.2 Strong rationality models 52

3.3 Sources of uncertainty 54

3.4 Choice rules under uncertainty 56

3.5 Cognitive effects 59

3.6 Contextual choice rules 61

3.7 Computational limitations 63

3.8 Bounded rationality models 65

4 Dynamic action and belief revision 69

4.1 Intertemporal rationality 70

4.2 Strong rationality dynamic models 72

4.3 Dynamic uncertainty 74

4.4 Dynamic choice rules under uncertainty 76

4.5 Value of information 78

4.6 Exploration-exploitation dilemma 80

4.7 Bounded rationality in dynamics 83

4.8 Learning models 85

5 Coordination of players through beliefs 89

5.1 Strategic rationality and equilibrium 90

5.2 Nash equilibrium 92

5.3 Informational limitations 94

5.4 Equilibrium under uncertainty 96

5.5 Cognitive effects 99

5.6 Contextual equilibrium concepts 101

5.7 Computational limitations 103

5.8 Bounded rationality equilibria 105

6 Learning processes among players 109

6.1 Intertemporal strategic rationality 110

6.2 Subgame perfect equilibrium 111

6.3 Dynamic uncertainty 114

6.4 Perfect Bayesian equilibrium 116

6.5 Value of information 118

6.6 Transmission of information 120

6.7 Dynamic processes under bounded rationality 122

6.8 Learning models 125

7 Communication and reasoning in an economic system 129

7.1 Modeler's view 130

7.2 Agent's view 132

7.3 Information as an external coordination signal 134

7.4 Knowledge as an internal coordination device 136

7.5 Information as an exchangeable good 138

7.6 Knowledge as a factor of production 140

7.7 Role of institutions 142

7.8 Eductive genesis of institutions 145

8 Evolution of the economic system 149

8.1 Evolution of the modeler's model 150

8.2 Evolution of the agent's knowledge 152

8.3 Evolution of markets 154

8.4 Evolution of hierarchical organizations 156

8.5 Financial contagion 158

8.6 Technological innovation 160

8.7 Evolutionary genesis of institutions 162

8.8 Naturalization of institutions 164.

Notes:

"Original version in French language published as L'économie cognitive"--T.p. verso.

Includes bibliographical references (pages [173]-179) and index.

ISBN:

9783540713463

3540713468

OCLC:

190786083