Economic complexities and cognitive hurdles: Accounting for specific economic misconceptions without an ultimate cause

David Leiser, Yhonatan Shemesh

Research output: Contribution to journalComment/debate

Abstract

Do folk-economic beliefs have an ultimate cause? We argue that, in many cases, the answer is negative. Cognition is constrained in both scope (via long-term memory [LTM]) and depth (via working memory [WM]). Consequently, laypeople are challenged by concepts essential for understanding complex systems, economics included: aggregation, indirect causation, and equilibrium. We discuss several economic misconceptions arising from this acute mismatch.

Original languageEnglish
Pages (from-to)e176
JournalBehavioral and Brain Sciences
Volume41
DOIs
StatePublished - 1 Jan 2018

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