Cognitive Economics

Cognitive Economics
Author: Paul Bourgine
Publisher: Springer Science & Business Media
Total Pages: 479
Release: 2013-03-20
Genre: Business & Economics
ISBN: 3540247084

The social sciences study knowing subjects and their interactions. A "cog nitive turn", based on cognitive science, has the potential to enrich these sciences considerably. Cognitive economics belongs within this movement of the social sciences. It aims to take into account the cognitive processes of individuals in economic theory, both on the level of the agent and on the level of their dynamic interactions and the resulting collective phenomena. This is an ambitious research programme that aims to link two levels of com plexity: the level of cognitive phenomena as studied and tested by cognitive science, and the level of collective phenomena produced by the economic in teractions between agents. Such an objective requires cooperation, not only between economists and cognitive scientists but also with mathematicians, physicists and computer scientists, in order to renew, study and simulate models of dynamical systems involving economic agents and their cognitive mechanisms. The hard core of classical economics is the General Equilibrium Theory, based on the optimising rationality of the agent and on static concepts of equilibrium, following a point of view systemised in the framework of Game Theory. The agent is considered "rational" if everything takes place as if he was maximising a function representing his preferences, his utility function.

Cognitive Bubbles

Cognitive Bubbles
Author: Ciril Bosch-Rosa
Publisher:
Total Pages: 52
Release: 2017
Genre:
ISBN:

Smith et al. (1988) reported large bubbles and crashes in experimental asset markets, a result that has been replicated many times. Here we test whether the occurrence of bubbles depends on the experimental subjects' cognitive sophistication. In a two-part experiment, we first run a battery of tests to assess the subjects' cognitive sophistication and classify them into low or high levels. We then invite them separately to two asset market experiments populated only by subjects with either low or high cognitive sophistication. We observe classic bubble and crash patterns in the sessions populated by subjects with low levels of cognitive sophistication. Yet, no bubbles or crashes are observed with our sophisticated subjects, indicating that cognitive sophistication of the experimental market participants has a strong impact on price efficiency.

Bubbles and Crashes in Experimental Asset Markets

Bubbles and Crashes in Experimental Asset Markets
Author: Stefan Palan
Publisher: Springer
Total Pages: 171
Release: 2010-02-04
Genre: Business & Economics
ISBN: 9783642021466

This book describes a laboratory experiment designed to test the causes and properties of bubbles in financial markets and explores the question whether it is possible to design markets which avoid such bubbles and crashes. In the experiment, subjects were given the opportunity to trade in a stock market modeled after the seminal work of Smith et al. (1988). To account for the increasing importance of online betting sites, subjects were also allowed to trade in a digital option market. The outcomes shed new light on how subjects form and update their expectations, placing special emphasis on the bounded rationality of investors. Various analytical bubble measures found in the literature are collected, calculated, classified and presented for the first time. The very interesting new bubble measures "Dispersion Ratio", "Overpriced Transactions" and "Underpriced Transactions" are developed, making the book an important step towards the research goal of preventing bubbles and crashes in financial markets.

Are Filter Bubbles Real?

Are Filter Bubbles Real?
Author: Axel Bruns
Publisher: John Wiley & Sons
Total Pages: 87
Release: 2019-08-27
Genre: Language Arts & Disciplines
ISBN: 1509536469

There has been much concern over the impact of partisan echo chambers and filter bubbles on public debate. Is this concern justified, or is it distracting us from more serious issues? Axel Bruns argues that the influence of echo chambers and filter bubbles has been severely overstated, and results from a broader moral panic about the role of online and social media in society. Our focus on these concepts, and the widespread tendency to blame platforms and their algorithms for political disruptions, obscure far more serious issues pertaining to the rise of populism and hyperpolarisation in democracies. Evaluating the evidence for and against echo chambers and filter bubbles, Bruns offers a persuasive argument for why we should shift our focus to more important problems. This timely book is essential reading for students and scholars, as well as anyone concerned about challenges to public debate and the democratic process.

Cognitive Vision

Cognitive Vision
Author: Brian H. Ross
Publisher: Gulf Professional Publishing
Total Pages: 368
Release: 2003-06-04
Genre: Medical
ISBN: 9780125433426

Use of visual information is used to augment our knowledge, decide on our actions, and keep track of our environment. Even with eyes closed, people can remember visual and spatial representations, manipulate them, and make decisions about them. The chapters in Volume 42 of Psychology of Learning and Motivation discuss the ways cognition interacts with visual processes and visual representations, with coverage of figure-ground assignment, spatial and visual working memory, object identification and visual search, spatial navigation, and visual attention.

Understanding Violence

Understanding Violence
Author: Lorenzo Magnani
Publisher: Springer Science & Business Media
Total Pages: 347
Release: 2011-09-18
Genre: Technology & Engineering
ISBN: 3642219721

This volume sets out to give a philosophical “applied” account of violence, engaged with both empirical and theoretical debates in other disciplines such as cognitive science, sociology, psychiatry, anthropology, political theory, evolutionary biology, and theology. The book’s primary thesis is that violence is inescapably intertwined with morality and typically enacted for “moral” reasons. To show this, the book compellingly demonstrates how morality operates to trigger and justify violence and how people, in their violent behaviors, can engage and disengage with discrete moralities. The author’s fundamental account of language, and in particular its normative aspects, is particularly insightful as regards extending the range of what is to be understood as violence beyond the domain of physical harm. By employing concepts such as “coalition enforcement”, “moral bubbles”, “cognitive niches”, “overmoralization”, “military intelligence” and so on, the book aims to spell out how perpetrators and victims of violence systematically disagree about the very nature of violence. The author’s original claim is that disagreement can be understood naturalistically, described by an account of morality informed by evolutionary perspectives as well. This book might help us come to terms with the fact that we are intrinsically “violent beings”. To acknowledge this condition, and our stupefying capacity to inflict harm, is a responsibility we must face up to: such understanding could ultimately be of help in order to achieve a safer ownership of our destinies, by individuating and reinforcing those cognitive firewalls that would prevent violence from always escalating and overflowing.

Political Bubbles

Political Bubbles
Author: Nolan McCarty
Publisher: Princeton University Press
Total Pages: 369
Release: 2013-05-21
Genre: Political Science
ISBN: 1400846390

How governmental failure led to the 2008 financial crisis—and what needs to be done to avoid another similar event Behind every financial crisis lurks a "political bubble"—policy biases that foster market behaviors leading to financial instability. Rather than tilting against risky behavior, political bubbles—arising from a potent combination of beliefs, institutions, and interests—aid, abet, and amplify risk. Demonstrating how political bubbles helped create the real estate-generated financial bubble and the 2008 financial crisis, this book argues that similar government oversights in the aftermath of the crisis undermined Washington's response to the "popped" financial bubble, and shows how such patterns have occurred repeatedly throughout US history. The authors show that just as financial bubbles are an unfortunate mix of mistaken beliefs, market imperfections, and greed, political bubbles are the product of rigid ideologies, unresponsive and ineffective government institutions, and special interests. Financial market innovations—including adjustable-rate mortgages, mortgage-backed securities, and credit default swaps—become subject to legislated leniency and regulatory failure, increasing hazardous practices. The authors shed important light on the politics that blinds regulators to the economic weaknesses that create the conditions for economic bubbles and recommend simple, focused rules that should help avoid such crises in the future. The first full accounting of how politics produces financial ruptures, Political Bubbles offers timely lessons that all sectors would do well to heed.

Discoverability

Discoverability
Author: Lorenzo Magnani
Publisher: Springer Nature
Total Pages: 170
Release: 2022-05-20
Genre: Science
ISBN: 3030933296

The book analyses the concept of discoverability, and some current epistemological problems related to it, with a special attention to science. It shows that discoverability is closely related to the sustainability of human creativity in an "eco-cognitive" perspective. Advocating the need of an integral ecology and leveraging the important concept of abduction, it demonstrates that an ecology of human creativity should have priority over other needs, i.e that the first ecological duty is to protect and sustain discoverability. Enhancing discoverability will protect human creativity, and it is exactly human creativity, a form of innovative abductive cognition, that can promote the implementation of the other kinds of ecology. The author guides readers through a comprehensive discussion on the concept of discoverability, eco-cognitive situatedness, and eco-cognitive openness and closure alike. By describing some key real-world examples, he highlights the main challenges that are currently posed to human creativity and epistemic integrity. He also describes future eco-cognitive settings, discussing the problem of overcomputationalism and suggesting a reinterpretation of the role of human knowledge. Overall, this book fills an important gap in the literature on the nexus abduction – creativity – discovery, offering a source of inspiration to philosophers, epistemologists, and cognitive scientists. Yet, it also addresses researchers in other disciplines interested in the problems of scientific discovery and epistemic integrity of research.

Patterns of Rationality

Patterns of Rationality
Author: Tommaso Bertolotti
Publisher: Springer
Total Pages: 280
Release: 2015-04-29
Genre: Philosophy
ISBN: 3319177869

This book proposes an applied epistemological framework for investigating science, social cognition and religious thinking based on inferential patterns that recur in the different domains. It presents human rationality as a tool that allows us to make sense of our (physical or social) surroundings. It shows that the resulting cognitive activity produces a broad spectrum of outputs, such as scientific models and experimentation, gossip and social networks, but also ancient and contemporary deities. The book consists of three parts, the first of which addresses scientific modeling and experimentation, and their application to the analysis of scientific rationality. Thus, this part continues the tradition of eco-cognitive epistemology and abduction studies. The second part deals with the relationship between social cognition and cognitive niche construction, i.e. the evolutionarily relevant externalization of knowledge onto the environment, while the third part focuses on what is commonly defined as “irrational”, thus being in a way dialectically opposed to the first part. Here, the author demonstrates that the “irrational” can be analyzed by applying the same epistemological approach used to study scientific rationality and social cognition; also in this case, we see the emergence of patterns of rationality that regulate the relationships between agents and their environment. All in all, the book offers a coherent and unitary account of human rationality, providing a basis for new conceptual connections and theoretical speculations.