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COGNITIVE ECONOMICS AND FINANCIAL DECISIONS Single discipline educational activity
Course Sheet Academic Year of enrolment:
Professor and Collaborators:
Hours of classroom activity:
Prerequisites:
There are no specific prerequisites for this course. However, the knowledge of microeconomics and experimental economics is strongly recommended.
Objectives
Contents The general purpose of cognitive economics is to understand and deepen agents' economic and financial decisions based on an interdisciplinary and intercultural approach that uses the analytical tools developed both by the social sciences and by the cognitive sciences and, in particular, by decision theory, experimental economics, cognitive psychology, philosophy of mind, linguistics, artificial intelligence, and neuroscience. The main specific objective of cognitive economics is to understand and analyse the cognitive processes through which individuals collect, process, and use data and information in order to create knowledge, govern complexity, formulate their own preferences, and make economic and financial decisions. A further objective of cognitive economics is the understanding of the ways in which the subjective representation of reality affects the individual ability to make economic decision in the context of market dynamics.
Extended Syllabus The course program focuses on the study of the following topics:
(1) Economics as an experimental science: methods and principles of experimental economics.
(2) The validity of the criticisms of the theory of rational choice: the weakness of axiomatic rationality; the systematic violations of axiomatic rationality; bounded and cognitive rationality.
(3) The cognitive approach to economic phenomena: behavioural economics and cognitive economics: differences and similarities.
(4) Friedrich A. von Hayek and contemporary neurosciences: developments of neuroeconomics.
(5) Economics and Artificial Intelligence: the abductive approach and the theories of Herbert A. Simon.
(6) Economics and cognitive models: the developments of Simon's theories.
(7) Neuroscience and cognitive game theory.
Recommended Bibliography Basic course book:
(1) Paul Bourgine, Jean-Pierre Nadal (eds.) (2004), Cognitive economics. An interdisciplinary approach, Springer-Verlag, Berlin, Heidelberg.
For further study:
(1) Herbert A. Simon H.A. (1955), "A behavioral model of rational choice", The Quarterly Journal of Economics, Vol. 69, n. 1, pp. 99-118.
(2) Herbert A. Simon (1959), "Theories of decision-making in economics and behavioral science", American Economic Review, Vol. 49, n. 3, pp. 253-283.
(3) Edoardo Datteri (2017), "Che cos'è la scienza cognitiva", Carocci, Roma.
(4) John von Neumann (2014) [1958], "Computer e cervello", Il Saggiatore, Milano.
(5) Friedrich A. von Hayek (1937), "Economics and knowledge", Economica, Vol. 4, n. 13, pp. 33-54.
(6) Friedrich A. von Hayek (2017) [1952], "The sensory order", The University of Chicago Press, Chicago.
Teaching Methods Frontal and participatory lessons; scientific seminars; debriefing methods; continuous tutoring activity, that is, to follow the students individually or in group after their class, especially in the preparation of brief term papers and/or team works.
Evaluation methods Verification of learning:
(1) Learning assessment: mid-term exams.
(2) Summative assessment: final test including closed and/or open-ended questions.
(3) Final assessment: marks expressed in thirtieths.