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Is Behavioral Economics Doomed?

Here is a skeptical take on the insights supposedly offered by the rise of behavioral economics as represented by Daniel Kahneman and others. Since I’m in the process of reviewing Kahneman it will be interesting to see if Levine’s take on behavioral economics jibes with my take on Kahneman in particular and behavioral economics in general – I have a strong sense that is unlikely to be the case.

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Hayek and Behavioral Economics: Mindscapes and Landscapes: Hayek and Simon on Cognitive Extension

I see that the publisher now has a fully detailed page up for a volume that I’ve been privileged to be a part of. The Foreword is by a very nice chappie going by the name of V.Smith and includes luminaries such as McCloskey, Boettke, Gintis, Steel and others. My abstract:

Mindscapes and Landscapes: Hayek and Simon on Cognitive Extension

Hayek’s and Simon’s social externalism runs on a shared presupposition: mind is constrained in its computational capacity to detect, harvest, and assimilate “data” generated by the infinitely fine-grained and perpetually dynamic characteristic of experience in complex social environments. For Hayek, mind and sociality are co-evolved spontaneous orders, allowing little or no prospect of comprehensive explanation, trapped in a hermeneutically sealed, i.e. inescapably context bound, eco-system. For Simon, it is the simplicity of mind that is the bottleneck, overwhelmed by the ambient complexity of the environmental. Since on Simon’s account complexity is unidirectional, Simon is far more ebullient about the prospects of explanation. Hayek’s social externalism functions as a kind of distributed “extra-neural” memory store manifest as dynamic spontaneous orders. Simon’s organizational rule-governed externalism negotiates the “inner” world (the mind) with the “outer” world through a homeostatic interface that offloads the cognitive burden into the environment. Their respective externalisms may differ in detail but not in spirit in that it ameliorates their shared presupposition of cognitive constraint. Even though any “optimization talk” for Hayek and Simon is objectionable, knowledge acquisition can be represented by a contextualized stigmergic swarm optimization algorithm that gives due emphasis to both the individual and the environment. The key insight is that “perfect” knowledge is unnecessary, impracticable and indeed irrelevant if one understands the mechanism at work in complex sociality, a stigmergic sociality that in effect augments or scaffolds cognition.

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Agent-Based Computational Sociology

Check out this new book I’ve just come across – Wiley’s lists, across disciplines, is certainly looking very strong these days. Also check out two colleagues’ excellent Wiley offerings – Ted Lewis’ Network Science and of course Ken Aizawa’s and Fred Adams’ The Bounds of Cognition.

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Rationalism in Politics

In anticipation of a talk I’m giving later on in the week on Oakeshott’s so-called “dispositional conservatism”, here is a nice little piece by my chum Gene Callahan serving as a good introduction to RIP.

The British philosopher and historian Michael Oakeshott is a curious figure in twentieth-century intellectual history. He is known mostly as a “conservative political theorist,” although he rejected ideology and his conservatism was primarily temperamental. Furthermore, his work on politics was only a fraction of his output, which comprised idealist philosophy, aesthetics, religion, education, the philosophy of history, and even horse racing. His popularity reached its zenith in the 1950s and early 1960s, when he was well known on both sides of the Atlantic, appearing on the BBC and becoming the favorite philosopher at National Review. But he never seemed to seek popularity, and did little or nothing to boost his own when it subsequently faded. Today, despite the growing interest in Oakeshott since his death in 1990, even his best-recognized work, his essay “Rationalism in Politics,” is, I contend, not appreciated widely enough—thus, this article.

Lovers of liberty should keep Oakeshott’s work on rationalism in mind for at least two reasons. First, it offers a complementary but still significantly different critique of planning to those of Mises and Hayek. However, at the same time, it provides a warning to the advocates of freedom not to fall into the rationalist quagmire themselves. The relevance of the latter point is demonstrated by, for example, the tendency of many development economists, even those who are “market oriented,” to attempt to impose their theoretical schemes for taking a shortcut to westernization on some Third World country, while running roughshod over all the traditions, customs, and morals native to the place, which, whatever their short-comings, at least managed to sustain the society in question over previous centuries. Freedom cannot be “imposed” on a people according to some preconceived scheme. We all need to watch out for “the rationalist within.”

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Collective Intelligence 2012

Just under a week until the CI2012 shindig – as it so happens I’m busy co-writing a paper and co-editing a themed issue of Cognitive Systems Research on a species of CI – surprise, surprise “stigmergy.”

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The Emergence of the Mind: Hayek’s Account of Mental Phenomena as a Product of Spontaneous Physical and Social Orders

Gloria Zúñiga y Postigo’s intro from her excellent paper.

Friedrich Hayek’s social theory is well known for his articulation of the paradigm of spontaneous orders that challenges the traditional distinction between what is natural and what is artificial. The problem that Hayek saw is that language and other social objects do not fall under either heading completely. Language is, for example, seen as natural since it was not designed by man. At the same time, man has imposed rules of grammar on natural languages as these became formalized and documented. From this perspective, language falls under the category of artificial too. This distinction thus fails in its application not only to language, but also to any other object that is, as Hayek puts it, the result of human action, but not of human design.  The paradigm of spontaneous orders, which applies to all social objects, has thus become the hallmark of Hayek’s social theory.