1 Introducing Cognitive Economics The Economics of What is in People’s Minds.

Slides:

Advertisements

Similar presentations

BEHAVIORAL RESEARCH IN MANAGERIAL ACCOUNTING RANJANI KRISHNAN HARVARD BUSINESS SCHOOL & MICHIGAN STATE UNIVERSITY 2008.

Advertisements

Artificial Intelligence

Fatalism, Locus of Control and Retirement Saving July, 2009 Miles Kimball and Tyler Shumway.

1 Myers-Briggs Type Indicator Carl G. Jung’s theory of psychological types Differences between normal healthy people Source of misunderstanding and miscommunication.

Course Behavioral Economics Alessandro InnocentiAlessandro Innocenti Academic year Lecture 2 Experiments and Virtual Reality LECTURE 2 EXPERIMENTS.

The Mind, The Brain, Intelligence, and Cognition.

Cognitive Economics and Financial Choices: Explaining Portfolio Choice and Total Saving Miles Kimball Tyler Shumway Robert Willis.

Doing Social Psychology Research

Definition of Cognitive Economics:

Finance - SS200 Behavioural Economics - 3 March 2004 by Martin Barner.

Introducing Social Psychology

Unit 7: Intelligence (Cognition)

PSYCHOLOGY Introduction to Psychology By Dr. Abdullah AL-ZAhrani.

INTRO TO PSYCHOLOGY.

Chapter 1 Economic Models Slides created by Linda Ghent

AS AN ACADEMIC DISCIPLINE Psychology. This course is all about why? Why do individuals do things? Why do individuals like things? Why do individuals say.

Myers-Briggs Type Inventory (MBTI) Carl Jung: Theory explaining predictable patterns of behavior Predictable differences caused by differences in how people.

Overview of Psychology Dr. Robert Kaleta Introductory Psychology University of Wisconsin-Milwaukee.

Chapter 4 by Kathleen Mastrian and Dee McGonigle

Medical / health / Psychology Applied psychology Psychological knowledge necessary for all physicians in their practice.

Cassidy Willie, Hannah Mohr, Maya Dokic, Brock Hislop, Drew Fry, Alora Hess.

5. Alternative Approaches. Strategic Bahavior in Business and Econ 1. Introduction 2. Individual Decision Making 3. Basic Topics in Game Theory 4. The.

Historical Origins of Social Psychology Wilhelm Wundt William McDougall Floyd Allport mid 1800’s

Experimental Economics and Neuroeconomics. An Illustration: Rules.

Thinking, Language, and Intelligence. Thought Cognition—mental activities involved in acquiring, retaining, and using knowledge Thinking—manipulation.

Psychology The study of mind and behavior. Behavior Every measurable internal and external activity a living things does.

Boundless Lecture Slides Free to share, print, make copies and changes. Get yours at Available on the Boundless Teaching Platform.

Artificial Intelligence

What is Psychology? Chpt 1.

Wrap Up Psychological assumptions… Permeate the social sciences Rational view Behavioral view Biased judgment Malleable preferences Influenced.

A Brief History of Psychology

Chapter 1 – Introducing Psychology Section 1 - Why Study Psychology Section 2 – A Brief History in Psychology Section 3 – Psychology as a Profession.

Psychological Perspectives

1 Cognitive Economics Definition: Taking seriously data other than actual choices in the wild. Must be linked back to actual choices in the wild. Analogous.

Psychological Theories on Intelligence

1 constructing an economic cognitive model using dialectics to explain the psycho-dynamic motion of economic decision-making Presented by Peter Baur University.

Cognitive Economics Miles Kimball University of Michigan Presentation at Osaka University.

Idealism PowerPoint. What is Idealism??? Some philosophers hold that if we push our investigation of matter far enough, we end up with only a mental world.

APPROACHES TO PSYCHOLOGY. Theoretical Approaches Since the 1950s, psychologists have adopted a number of diverse approaches to understanding human nature.

Definitions Think like humansThink rationally Act like humansAct rationally The science of making machines that: This slide deck courtesy of Dan Klein.

Human Sciences Study of the self conscious animal.

INLS 200 thursday, january 17.

Introduction to Body Dressing:. Interdisaplinary: adjective. 1. combining or involving two or more academic disciplines or fields of study.

What is Psychology? Pages What is Psychology? Give me your own personal definition of Psychology.

Psychological Perspectives Seven Ways of Approaching Psychology.

Making Sense of Ambiguity: Organizational Entrepreneurship Mariann Jelinek, Ph.D. College of William and Mary.

Psychology. Is the scientific study of behavior and the mental process –This study can be observable: what you can see, measure, etc… behavior –Can be.

CS440/ECE448: Artificial Intelligence Lecture 1: What is AI?

Unit 1: Science of Psychology

MANAGERIAL ECONOMICS is a social science that helps to explain how resources such as labor, capital, land and money can be allocated efficiently.

Behavioral Finance.

Gardener: Multiple Intelligences By: Laura & Kristin

Unit 7: Intelligence (Cognition)

Neuromarketing in Food Retailing Interdisciplinary Relations of Neuromarketing and Neuropsychology Chapter 2 Jakub Berčík.

Bounded Rationality Herbert A. Simon.

Unit 8: Intelligence (Cognition)

What is Psychology? An Introduction.

Cognitive Approach to Mass Communication M 1/15/08

INTRO TO PSYCHOLOGY.

Modern Psychology Where does field stand in terms of undergraduate popularity? Where to use degree? ¼ - ¾-

Psychological Research Areas

Chapter Fourteen Personality in Perspective: Overlap and Integration

Defining Intelligence:

Artificial Intelligence Lecture 2: Foundation of Artificial Intelligence By: Nur Uddin, Ph.D.

Miles Kimball University of Michigan Presentation at Osaka University

Intelligence (Cognition)

What comes to mind when you think about Psychology?

What is Psychology? Chapter 1.

What is Human behavior?.

Presentation transcript:

1 Introducing Cognitive Economics The Economics of What is in People’s Minds

2 Named by Analogy to “Cognitive Psychology” Cognitive Psychology = the area of psychology that examines internal mental processes such as problem solving, memory and language. Cognitive Psychology was a departure from Behaviorism--the idea that only outward behavior was a legitimate subject of study.

3 How is “Cognitive Economics” Different from “Behavioral” or “Psychological” Economics? 1.Cognitive economics is narrower. 2.Much of cognitive economics is inspired by the internal dynamic of economics rather than by psychology. 3.Cognitive economics is a field of study, not a school of thought.

4 Three Themes of Cognitive Economics 1.New Types of Data 2.Heterogeneity 3.Finite Cognition

5 Three Themes of Cognitive Economics: Data 1.New kinds of data, especially new, innovative kinds of survey data: survey measures of expectations survey measures of preferences happiness data fluid intelligence data crystallized intelligence data –includes data on folk theories of economics

6 Areas of Economics by Distinctive Data Type Standard Economics (including “Mindless” Psychological Economics a la Gul and Pesendorfer): actual market choices only. Experimental Economics: choices in artificial situations but with real stakes. Neuroeconomics: FMRI, saccades, skin conductance, … Bioeconomics: genes, hormones Cognitive Economics: mental contents (based on tests and self-reports) and hypothetical choices.

7 Three Themes of Cognitive Economics: Heterogeneity 2. Individual Heterogeneity: heterogeneous expectations heterogeneous preferences, heterogeneous emotional reactions heterogeneous views on how the world works

8 Three Themes of Cognitive Economics: Scarce Cognition 3. Finite and scarce cognition: Finite cognition=the reality that people are not infinitely intelligent. Scarce cognition=some decisions required by our modern environment can require more intelligence for full-scale optimization than an individual has.

9 “Bounded Rationality” vs. “Scarce Cognition” Same meaning, but “bounded rationality” seems a misnomer, since it is rational to recognize one’s own cognitive limitations. Two obstacles have prevented “Bounded Rationality” from becoming part of the mainstream –paucity of data –theoretical difficulties stemming from the importance of constrained optimization as a theoretical tool in economics “Scarce Cognition” is meant to label a data-rich research agenda, using new theoretical tools.