1. Minds and markets as complex systems: an emerging approach to cognitive economics.
- Author
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Johnson, Samuel G.B., Schotanus, Patrick R., and Kelso, J.A. Scott
- Subjects
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MENTAL representation , *COGNITIVE science , *COLLECTIVE representation , *BEHAVIORAL economics , *SOCIAL processes - Abstract
Cognitive economics uses cognitive science to understand economic decision-making. We review research streams that conceptualize both minds and markets as complex adaptive systems. Narrative theories of decision-making examine the cognitive and social representations and processes that govern decision-making under uncertainty. Agent-based cognitive models study how cognitive mechanisms at the individual level can contribute to emergent systems-level phenomena. Post-cognitivist approaches such as the Market Mind Hypothesis consider minds and markets to be one continuous complex system. Coordination Dynamics is one useful framework for analyzing this system. Cognitive economics is an emerging interdisciplinary field that uses the tools of cognitive science to study economic and social decision-making. Although most strains of cognitive economics share commitments to bridging levels of analysis (cognitive, behavioral, and systems) and embracing interdisciplinary approaches, we review a newer strand of cognitive economic thinking with a further commitment: conceptualizing minds and markets each as complex adaptive systems. We describe three ongoing research programs that strive toward these goals: (i) studying narratives as a cognitive and social representation used to guide decision-making; (ii) building cognitively informed agent-based models; and (iii) understanding markets as an extended mind – the Market Mind Hypothesis – analyzed using the concepts, methods, and tools of Coordination Dynamics. [ABSTRACT FROM AUTHOR]
- Published
- 2024
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