Institutions and Economics

In William Bechtel & George Graham (eds.), A Companion to Cognitive Science. Oxford, UK: Blackwell. pp. 713–721 (2017)
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Abstract

Economic theory is built on assumptions about human behavior – assumptions which are embodied in rational choice theory. Underlying those assumptions are implicit notions about how the mind works. Until recently economists have not self‐consciously examined those implicit notions, but recent work in economics and particularly game theory has forced economists to explore the sources of the beliefs that underlie economic choices and therefore to build a bridge between cognitive science and economics. In this essay I explore the path of economic reasoning that leads to engagement with cognitive science.

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