ISBN: 3540404686
TITLE: Cognitive Economics
AUTHOR: Bourgine, Nadal
TOC:

1 What is Cognitive Economics? 1
Paul Bourgine
1.1 Introduction 1
1.2 Forms of Individual Rationality 3
1.3 The Search for Collective Rationality 6
1.4 Towards Cognitive Economics 10
Pare I: Conceptual and Theoretical Bases 13
2 Rational Choice under Uncertainty 15
Mohammed Abdellaoui
2.1 Introduction 15
2.2 Expected Utility Theory 16
2.3 Violations of Expected Utility 23
2.4 Generalizations of Expected Utility 26
2.5 Concluding Remarks 29
References 30
3 General Equilibrium 33
Alan Kirman
3.1 The Basic Model: an Exchange Economy 35
3.2 Walrasian Equilibrium 38
3.3 Proof of the Existence of Equilibrium in the Two Good Case 40
3.4 Competitive Equilibrium and Pareto Optimality 41
3.5 Production in General Equilibrium 43
3.6 The Informational Requirements of the Competitive Mechanism 45
3.7 Uniqueness and Stability of Equilibrium 46
3.8 Towards More Realistic Models 48
3.9 Conclusion 52
References 52
4 The Principles of Game Theory 55
Bernard Walliser
4.1 Introduction 55
4.2 Static Games without Uncertainty 57
4.3 Dynamic Games without Uncertainty 62
4.4 Static Games with Incomplete Information 68
4.5 Dynamic Games with Imperfect Information 73
References 78
5 Rationality and the Experimental Study of Reasoning 79
Guy Politzer
5.1 Introduction 79
5.2 Studies of Reasoning in the Laboratory 79
5.3 An Assessment of Performance 84
5.4 Reassessing Results in the Judgment and Decision-making Domain 89
5.5 Two kinds of Rationality? 90
5.6 Conclusion 91
References 92
6 Supraclassical Inference without Probability 95
David Makinson
6.1 First Path - Using Additional Background Assumptions 100
6.2 Second Path - Restricting the Set of Valuations 102
6.3 Third Path - Using Additional Rules 106
6.4 Conclusion 109
References 111
7 From Natural to Artificial Intelligence: Numerical Processing for Cognitive Tasks 113
Frdric Alexandre and Herv Frezza-Buet
7.1 Introduction 113
7.2 General Presentation and Justification 115
7.3 The Evolution Analogy 116
7.4 Artificial Neural Networks 120
7.5 A Stochastic Behavioral Approach: Reinforcement Learning 124
References 128
8 An Introduction to Statistical Mechanics 131
Mirta B. Gordon
8.1 Introduction 131
8.2 The Ising Model 132
8.3 Probabilities, Information and Entropy 137
8.4 Probability Laws in Statistical Physics 140
8.5 Fluctuations and Thermodynamic Limit 149
8.6 Systems out of Equilibrium 151
8.7 Numerical Simulations 152
8.8 Conclusion 154
References 155
9 Spontaneous Symmetry Breaking and the Transition to Disorder in Physics 157
Serge Galam
9.1 Introduction 157
9.2 The Ising Model 159
9.3 Spontaneous Symmetry Breaking 159
9.4 Applying an External Field 162
9.5 Creating Local Disorder 163
9.6 What Happens in the Vicinity of the Critical Point? 165
9.7 Adding More Disorder 166
9.8 Conclusion 168
References 168
10 Co-Evolutionist Stochastic Dynamics: Emergence of Power Laws 169
Sorin Solomon, Peter Richmond, Ofer Biham and Ofer Malcai
10.1 Introduction 169
10.2 The Stochastic Lotka-Volterra-Eigen-Schuster (LVES) System 172
10.3 The Multiplicative Langevin Process 174
10.4 Analysis of the Stochastic LVES System 175
10.5 Discussion 176
References 178
Part II: Research Areas 181
11 Topics of Cognitive Economics 183
Bernard Walliser
11.1 Introduction 183
11.2 Reasoning Theory 185
11.3 Decision Theory 187
11.4 Game Theory 190
11.5 Economic Theory 193
11.6 Conclusions 195
12 What is a Collective Belief? 199
Andr Orlan
12.1 Introduction 199
12.2 Pure Coordination Games and Schelling Saliences 202
12.3 Situated Rationality and the Role of Contexts 205
12.4 The Autonomy of Group Beliefs 208
12.5 Conclusion 211
References 212
13 Conditional Statements and Directives 213
David Makinson
13.1 Conditional Propositions 213
13.2 Conditional Directives 222
13.3 Summary 225
13.4 Guide to Further Reading 225
References 226
14 Choice Axioms for a Positive Value of Information 229
Jean-Marc Tallon and Jean-Christophe Vergnaud
14.1 Introduction 229
14.2 Decision Trees 231
14.3 Positive Value of Information, Consequentialism and the Sure Thing Principle 232
14.4 A Weaker Axiom on Dynamic Choices for a Positive Value of Information 239
14.5 Positive Value of Information without Probabilistic Beliefs 240
14.6 Concluding Remarks 242
References 242
15 Elements of Viability Theory for the Analysis of Dynamic Economics 245
Jean-Pierre Aubin
15.1 Introduction 245
15.2 The Mathematical Framework 249
15.3 Characterization of Viability and/or Capturability 252
15.4 Selecting Viable Feedbacks 255
15.5 Restoring Viability 257
References 264
16 Stochastic Evolutionary Game Theory 267
Richard Baron, Jacques Durieu, Hans Haller, Philippe Solal
16.1 Introduction 267
16.2 Models of Adaptive Learning in Games 267
16.3 Stochastic Stability 269
16.4 Application: Cournot Competition 275
References 278
17 The Evolutionary Analysis of Signal Games 281
Jean-Franois Laslier
17.1 Introduction 281
17.2 A Sender-Receiver Game 282
17.3 A Cheap-talk Game 286
17.4 Conclusion 290
References 291
18 The Structure of Economic Interaction: Individual and Collective Rationality 293
Alan Kirman
18.1 Introduction 293
18.2 Individual and Collective Rationality 294
18.3 Aggregate and Individual Behavior: An Example 294
18.4 Collective Rationality 298
18.5 Different Forms of Interaction 300
18.6 Herd Behavior in Financial Markets 301
18.7 Local Interaction 303
18.8 Networks 303
18.9 Misperception of the Interaction Structure 306
18.10 A Simple Duopoly Game 307
18.11 Conclusion 309
References 310
19 Experimental Markets: Empirical Data for Theorists 313
Charles Noussair and Bernard Ruffieux
19.1 Introduction 313
19.2 Methodology: How is an Experimental Market Constructed? 315
19.3 The Principal Results from Service Markets 318
19.4 The Behavior of Asset Markets 320
19.5 The Dynamics of Learning in Strategic Interactions 324
19.6 Conclusion 327
References 330
20 Social Interactions in Economic Theory: An Insight from Statistical Mechanics 335
Denis Phan, Mirta B. Gordon and Jean-Pierre Nadal
20.1 Introduction 335
20.2 Discrete Choice with Social Interactions (I): Individual strategic behavior and rational expectations 337
20.3 Discrete Choice with Social Interactions (II): Market price and adaptive expectations 344
20.4 Market Organisation with Search and Price Dispersion 350
20.5 Conclusion 353
References 354
21 Adjustment and Social Choice 359
Grard Weisbuch and Dietrich Stauffer
21.1 Introduction 359
21.2 The INCA Model 360
21.3 Simulation Results 362
21.4 Conclusions 368
References 369
22 From Agent-based Computational Economics Towards Cognitive Economics 371
Denis Phan
22.1 Introduction 371
22.2 Multi-agent Systems and Agent-based Computational Economics 372
22.3 Basic Concepts of Multi-agent Systems with Network Interactions 375
22.4 Individual and Collective Learning and Dynamics in a Discrete choice model 384
22.5 Conclusion 393
References 394
23 Social Networks and Economic Dynamics 399
Jean-Benot Zimmermann
23.1 Introduction 399
23.2 Small Worlds in a Knowledge-based Economy 401
23.3 Influence Networks and Social Learning 406
23.4 Conclusion 414
References 415
24 Coalitions and Networks in Economic Analysis 417
Francis Bloch
24.1 Introduction 417
24.2 Cooperative Solutions to Group and Network Formation 419
24.3 Noncooperative Models of Groups and Networks 421
24.4 Applications 423
References 426
Lexicon 426
25 Threshold Phenomena versus Killer Clusters in Bimodal Competion for Standards 429
Serge Calam and Bastien Chopard
25.1 Introduction 429
25.2 The Model 430
25.3 Discussion 432
25.4 Finite Size Effects 435
25.5 Species Evolution 438
25.6 Conclusions 439
References 440
26 Cognitive Efficiency of Social Networks Providing Consumption Advice on Experience Goods 443
Nicolas Curien, Gilbert Laffond, Jean Lain and Franois Moreau
26.1 Introduction 443
26.2 The Model 444
26.3 Discussion 450
26.4 Conclusion 454
References 456
Appendix: convergence analysis 456
The Future of Cognitive Economics 463
Jacques Lesourne
Index 473
END
