Abstract
The economic action of any individual seems to be guided by psychological components belonging, often more to the sphere of the intuitive rather than to the logical mind. Cognitive Economics, unlike other critical approaches to neoclassical rationality, is aware of this reality and moves the center of gravity of the theory of the mind of the economic actor from the aspects of conscious, explicit, intentional, and rational towards the tacit, sub-conscious, intuitive and emotional. Cognitive Economics, as empirical theory, par excellence, does not refuse to consider the contribution of the mind to an economic decision. The role of the psyche in many situations of choice is undeniable. It is not, however, the only cognitive reality responsible for economic choices. From this point of view, the concept of limited rationality, remaining within a vision of intentionality in cognitive activities, loses much of its explanatory capacity. One of the motives for economic action is limited rationality because there is not enough computational capacity for calculating the consciousness and the intentions of the human mind. Rationality is also limited through the influence of intuitive, affective, emotional, and silent factors, which all characterize what we have called the intuitive mind. The economic actor’s mind theory is based on cognitive duplicity, integrating the insensitive and the intuitive component depending on the situations and contexts of a decision. However, there are few situations in which we can say that the insensitive component takes the decision without influence of that intuitive. A small part of the mind emerges to the surface image of the economic actor, which characterizes some of the intuitive. But it rests on the larger submerged body of the mind, which is not visible but responsible for guiding the inferential paths of homo-economicus. The’ cognitive economy assumes that this duality of the human mind and the primacy of the intuitive component explains economic action.
Highlights
In 1995 Daniel Goleman published the concept of “emotional intelligence”. This term expresses an almost revolutionary concept because it has reassessed the traditional economic conception that almost exclusively attributed human capacities to the commonly known IQ, the intellectual dimension, and the weight it has on individuals and organizations to prepare them for success
Kahnemann contributed to enriching the economic setting traditionally based on the search for the state of the best by giving greater weight to non-rational determinants in the formation of economic choices
Neuroeconomics is a highly interdisciplinary field of research which aims at building a neurobiological model of inferential and decision-making processes by integrating knowledge, methods, and results from many areas of mind research, including psychology, neuroscience, economics and artificial intelligence
Summary
In 1995 Daniel Goleman published the concept of “emotional intelligence” In some respects, this term expresses an almost revolutionary concept because it has reassessed the traditional economic conception that almost exclusively attributed human capacities to the commonly known IQ, the intellectual dimension, and the weight it has on individuals and organizations to prepare them for success. McKelvey believes that the sciences of complexity can offer precious insights into the processes that define the conditions for emerging order in businesses, offering the potential to develop tools, techniques, processes, structures, and norms in support of a new “leadership science” It could help managers create the conditions for the likely emergence of effective behaviors without creating barriers that are often the result of a command-and-control management system
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