Tag Archives: Bounded Rationality

Hayek and Behavioral Economics

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Still on Hayek. Having just received my copy, I thought I’d give it another plug. My chapter Mindscapes and Landscapes: Hayek and Simon on Cognitive Extension is in this collection. The full line-up as follows:

Foreword; V. Smith

Introduction; R. Frantz & R. Leeson

Friedrich Hayek’s Behavioural Economics in Historical Context; R. Frantz

A Hayekian/Kirznerian Economic History of the Modern World; D. McCloskey

Was Hayek an Austrian Economist? Yes and No. Was Hayek a Praxeologist? No.; W. Block

Error is Obvious, Coordination is the Puzzle; P. Boettke, W. Caceres & A. Martin

Hayek’s Contribution to a Reconstruction of Economic Theory; H. Gintis

On the Relationships Between Friedrich Hayek and Jean Piaget; C. Chelini & S. Riva

Cognitive Autonomy and Epistemology of Action in Hayek’s and Merleau-Ponty’s Thought; F. Di Iorio

Hayek’s Sensory Order, Gestalt Neuroeconomics, and Quantum Psychophysics; T. Takahashi & S. Egashira

Mindscapes and Landscapes: Hayek and Simon on Cognitive Extension; L. Marsh

Hayek’s Complexity Assumption, Ecological and Bounded Rationality, and Behavioural Economics; M. Altman

Subjectivism and Explanations of the Principle; S. Fiori

Satisficing and Cognition; Complementarities between Simon and Hayek; P. Earl

The Oversight of Behavioural Economics on Hayek’s Insight; S. Rizzello & A. Spada

Complexity and Degeneracy in Socio-Economic Systems; G. Steel & H. Hosseini

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Inaugural Herbert Simon Society Conference

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The Italian Cultural Institute of New York
The International Herbert A. Simon Society
The Italian Academy for Advanced Studies in America

cordially invite you to the

1st Conference Herbert Simon Society
BOUNDED RATIONALITY UPDATED
New York (USA), April 8th-10th 2013

8th-9th April
Italian Cultural Institute
686 Park Avenue, New York, NY 10065

10th April
The Italian Academy for Advanced Studies in America, Columbia University
1161 Amsterdam Avenue, New York, NY 10027

The Herbert A. Simon Society brings together some of the most important economists critical of contemporary economic models and aims at reformulating economic theory by starting with the many non-neoclassical directions that have been developed in recent years.This conference is focused on three themes that were identified as particularly relevant in order to apply Simon’s ideas in the contemporary debate: duality of mind, creativity, critics and alternative paradigms to rational expectations.

Welcoming Remarks
Natalia Quintavalle (Consul General)
Riccardo Viale (Director Italian Cultural Institute) and Massimo Egidi (Herbert Simon Society)

Introduction: Katherine Simon Frank

Lectures:
Gerd Gigerenzer: Homo Heuristicus: Why biased minds make better inferences
Roy Radner: Bounded rationality: In search of a definition
Alan Kirman: Is it rational to have rational expectations?
Ron Sun: On implicit vs. explicit and fast vs. slow processes
David Over: New paradigm psychology of reasoning and rationality
Laura Macchi: The interpretative function of thinking in insight problem solving
Jonathan Schooler: Keeping the mind open for inspiration
Joseph Stiglitz: Rethinking macroeconomics: What went wrong and how to fix it

Parallel sessions on:
Rational expectations, bounded rationality, markets and investments
Slow and fast thinking
Creativity and other stuffs

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Hayek and Behavioral Economics

ShowJacket.asp

My chapter Mindscapes and Landscapes: Hayek and Simon on Cognitive Extension is published in this collection today. The full line-up as follows:

Foreword; V.Smith
Introduction; R.Frantz & R.Leeson
Friedrich Hayek’s Behavioural Economics in Historical Context; R.Frantz
A Hayekian/Kirznerian Economic History of the Modern World; D.McCloskey
Was Hayek an Austrian Economist? Yes and No. Was Hayek a Praxeologist? No.; W.Block
Error is Obvious, Coordination is the Puzzle; P.Boettke, W.Caceres & A.Martin
Hayek’s Contribution to a Reconstruction of Economic Theory; H.Gintis
On the Relationships Between Friedrich Hayek and Jean Piaget; C.Chelini & S.Riva
Cognitive Autonomy and Epistemology of Action in Hayek’s and Merleau-Ponty’s Thought; F.Di Iorio
Hayek’s Sensory Order, Gestalt Neuroeconomics, and Quantum Psychophysics; T.Takahashi & S.Egashira
Mindscapes and Landscapes: Hayek and Simon on Cognitive Extension; L.Marsh
Hayek’s Complexity Assumption, Ecological and Bounded Rationality, and Behavioural Economics; M.Altman
Subjectivism and Explanations of the Principle; S.Fiori
Satisficing and Cognition; Complementarities between Simon and Hayek; P.Earl
The Oversight of Behavioural Economics on Hayek’s Insight; S.Rizzello & A.Spada
Complexity and Degeneracy in Socio-Economic Systems; G.Steel & H.Hosseini

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Herbert Simon as Behavioral Economist

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Here is a draft of a co-authored entry for Real World Decision Making: An Encyclopedia of Behavioral Economics. Morris Altman, editor. Santa Barbara: Praeger.

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Herbert Simon in Red

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Many of you who follow this website will know of my enthusiasm for Herbert Simon. Here is an unusual portrait of Simon painted by the very distinguished Richard Rappaport (wikipedia entry) that I chanced upon and for good measure, I include a link to Simon’s last interview.

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

ShowJacket.asp

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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