Economic Theory and Cognitive Science: Microexplanation

Don Ross explores the tangled and much-argued relationship between economic theory and cognitive science and manages the feat of creating a cohesive perspective. Ever since the 1970s and the psychology experiments of Kahnemann & Tversky (which went on to win a Nobel Prize in economics - Kahnemann confessed he'd never in his life so much as studied Economics 101) the precepts of economics, based on the "rational man" have been under attack and the philosophical basis has been questioned. Is economics the product of atomised individual actions - or a social construct? What Don Ross does here is stand back and look at the fundamentals of economic theory, and attempts to cohesively tie things together. Is there a neat fit between the way humans tick and the way markets tick? The authority (and humour) of Ross' voice elevates this book above the sometimes shrill pop-marketplace of ideas, and this volume, all 450 pages of it, really sets out to establish a new milestone in economics: knocking down old theories and assumptions, and building out of this rubble a new platform. I don't think it succeeds. I feel Ross would have achieved a lot more if he had used a wider research scope. For the most part Ross' book is a meta-analysis of the work of other economic theorists including Philip Mirowski, Paul Samuelson and the author's own hero Daniel Dennett, and it really could have benefitted, if the author had incorporated, with little additional effort, more insights from the rapidly evolving ground of Cognitive Science. A shame, because the title of the book, and the subheading, promises this. As it turns out Ross doesn't appear comfortable delving into the realities of the human mind, and he prefers to wander back to the Departments of Economics and Philosophy where he clearly feels at ease. My second criticism is that he has produced some very, very heavy reading. Ross has some awful writing habits that could have done with a firm editor. So I blame the publisher as much as Don Ross. A good editor would surely have pulled out these things: - Strange metaphors (Tarzan anyone?) that distract rather than illuminate. - Constant use of acronyms (RPT, OISF, EGT...) which effectively encode rather than clarify the meaning of his long sentences. - Academic jargon. Example: "Eliminativism." This books is aimed squarely at his peers rather than at the intelligent public. The old My Fair Lady song "Why can't the English learn to Speak?" came to mind. "Why can't intelligent academics learn to communicate?" My guess is that Ross has been inspired by Dennett's own writing style, which is damned lively, but this author hasn't quite pulled it off. So I have very mixed views on this book. Even so, it deserves wider reading in the finance sector where the quants too often ignore the realities and irregularities of the humans who make up the market. But fasten your seatbelts. This is not an easy read.