Related Experiment Video
Updated: Mar 8, 2026

Combining Behavioral Endocrinology and Experimental Economics: Testosterone and Social Decision Making
Published on: March 2, 2011
COGNITIVE ECONOMICS
1University of Michigan.
Abstract:
Cognitive economics is the economics of what is in people's minds. It is a vibrant area of research (much of it within behavioural economics, labour economics and the economics of education) that brings into play novel types of data, especially novel types of survey data. Such data highlight the importance of heterogeneity across individuals and highlight thorny issues for welfare economics. A key theme of cognitive economics is finite cognition (often misleadingly called "bounded rationality"), which poses theoretical challenges that call for versatile approaches. Cognitive economics brings a rich toolbox to the task of understanding a complex world.
Related Concept Videos
Cognitivism
Previously dominated by behaviorism, which prioritized observable behaviors and largely ignored mental processes, psychology transformed in the 1950s. Cognitive psychologists argue that understanding how we think and process...
Introduction to Cognitive Psychology
This field emerged in the mid-20th century, following a period dominated by behaviorism, which...
The Influence of Cognition on Affect
Cognitive Learning
E. C. Tolman's theory of purposive behavior emphasizes that much behavior is goal-directed. He argued that to understand behavior, we must look at the entire sequence of actions leading to a goal. For instance, high school students study hard, not just due to past reinforcement but also to achieve the goal of getting into a good college.
Tolman introduced the idea that behavior is influenced by...
Lazarus's Cognitive Appraisal Theory
Primary Appraisal:...
Causes of Social Behavior II: Cognitive Processes

