Cognitive psychology has been applied to economics

["Roger Koppl" <KOPPL@xxxxxxxxxxxxxxx>]

Since I'm posting the following to Mike Dietrich, I might say
something on cognitive psych?  Hayek wrote a manuscript on psychology
in 1920, revised and published it in 1952.  Nowadays, "The Sensory
Order" would be called a work in "evolutionary psychology."
Apparently, it was a direct source for some of the original work on
neural nets. But how does it apply to economics?  Many ways, I think.
For just one attempt to make this bit of cognitive psych do "real"
work in economics, may I suggest the following?  (Please forgive the
self promotion.)

    Butos, William N. and Roger Koppl. "Hayekian Expectations: Theory
    an Empirical Applications," CONSTITUTIONAL POLITICAL ECONOMY
    1993, 4(3): 303-29.


To Mike Dietrich:

A propos of the attached post of yours, would you be kind enough to
post an abstract of your argument?  And what is the literature you
relate to?  Would it be the "capabilities theory of the firm" or the
"new institutional economics" by any chance?

Roger Koppl


 > There have been a few messages posted about how the
> (cognitive/ social) psychology lieterature might be used especially
> to analyse lock-in etc. If anyone is intersted I have attempted this
> in (a late chapter) of my recent book "Transaction cost economics and
> beyonmd: towards a new economics of the firm" (Routledge, 1994).
> Don't  be put off by the title it attempts to overcome th
> sindividualism and statics of TC theories of the firm.
>
> To the person who I sent this message to individually - my apologies.
>
> Mike Dietrich.
> University of Sheffield, UK
>