Cognitive Economics

Miles Kimball

The Japanese Economic Review, 2015, vol. 66, issue 2, 167-181

Abstract: type="main">

Cognitive economics is the economics of what is in people's minds. It is a vibrant area of research (much of it within behavioural economics, labour economics and the economics of education) that brings into play novel types of data, especially novel types of survey data. Such data highlight the importance of heterogeneity across individuals and highlight thorny issues for welfare economics. A key theme of cognitive economics is finite cognition (often misleadingly called “bounded rationality”), which poses theoretical challenges that call for versatile approaches. Cognitive economics brings a rich toolbox to the task of understanding a complex world.

Date: 2015
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