“Cognitive economics is in effect a science of mistakes,” writes NOMIS researcher Andrew Caplin in his new book, An Introduction to Cognitive Economics: The Science of Mistakes, published by Springer Nature. Caplin introduces readers to cognitive economics — a rapidly emerging interdisciplinary science built on economic, psychological, and data scientific foundations — exploring how cognitive processes shape economic decisions, earnings, savings and other behaviors, and how cognitive economics can be applied to tackle social-scientific questions for the age of AI.
Throughout Caplin’s open-access book, the economist provides new approaches to help scholars collaborate and solve problems that can shape economic outcomes and bridge the gap between theoretical knowledge and the real world.
Divided into two parts, the first section brings readers up to speed on economic concepts that underlie decision-making mistakes, such as utility functions, subjective beliefs, and costs of learning. It also explores real-world applications, including improvements in legal decision-making, online privacy protection, and optimizing human-AI collaboration. The book also discusses the future impact of AI on the workforce and emphasizes the need for decision-making skills and financial literacy in navigating this evolving landscape. In the second section of the book, Caplin addresses the barriers to progress within social sciences, advocating for interdisciplinary cooperation and innovative measurement techniques to advance the field.
Download and read the Springer Nature book: An Introduction to Cognitive Economics: The Science of Mistakes
