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The Economics of the Mind

The Economics of the Mind

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The Economics of the Mind addresses economics from the perspective of real men and women: how they assess things, decide and act. It looks at the choices we make, and calls for the assumptions which make up the foundations of economic theory to be consistent with the mechanisms which guide the workings of the human mind.

The author begins by presenting an historical analysis of the role of knowledge and decision-making, taking into account the work of Hayek and Simon. Salvatore Rizzello then reconstructs the birth and development of neo-institutionalism, experimental economics and evolutionary economics. He discusses economic and social institutions and how these simplify the individual's choices related to knowledge and tasks. Specifically, he examines rules, learning and evolution in neo-institutional economics. The book breaks new ground on the role of the social sciences, and economics in particular, and suggests a move away from neoclassical economics towards a more definite link between economics, psychology and the artificial sciences.

The book will be warmly welcomed by institutional and evolutionary economists, and those working in the field of economic psychology.