Research work · 2025
Introduction to Cognitive Economics
Andrew Caplin
An Introduction to Cognitive Economics
Abstract
AbstractThis chapter introduces cognitive economics. It explains its inter-disciplinary nature and the fundamental role of utility functions, subjective beliefs, costs of learning, and Blackwell experiments. It outlines the need for economic data engineering to separate out beliefs from preferences and thereby to scientifically study decision-making mistakes. It also discusses distinctions and connections between cognitive economics and behavioral economics.