Humans exhibit the remarkable ability to solve complex, multi-step problems despite their limited capacity for search. We review the standard theory of problem solving, which posits that heuristic guidance makes this possible, but we also note that most studies have emphasized the role of...

The goal of this research is to explore implicit and explicit processes in shaping an individual’s characteristic behavioral patterns, that is, personality. The questions addressed are how psychological processes may be separated into implicit and explicit types, and how such a separation...

Macroeconomic events often require individuals and policy-makers to make decisions that they are not accustomed to making. For example, a sovereign debt crisis makes it necessary to either default on government debt, increase taxes, cut public spending or to impose a mixture of these measures. I...

There exists a fundamental convergence between some major trends of modern epistemology—as outlined, for instance, by Filmer Northrop and Henry Margenau—and the theories actually developed within sciences of the human mind where two types of thought—one implicit and, the other,...

In order to employ and exhibit our Simon-inspired approach to computational economics, and specifically defend our version of the view that even logically untrained humans are rational, albeit no more than “boundedly” so, we provide two models, both rooted in computational logic, of how it...

This paper examines two paths by which F. A. Hayek’s work has influenced the cognitive theory of institutions: cognition and cultural evolution. It argues that there is a relationship between the sensory order and the social order. The explanation of social order begins with the human mind....

Should fear guide our actions and governments’ political decisions? A leitmotiv of common sense is that emotions are tricky, they blur our rational capacity of estimating utilities in order to plan action and thus they should be banned from any account of our rational expectations. In this...

We conducted an online study of projected behavioral and emotional responses to escalating terrorist threat. The study employed scenarios in which terrorists targeted commercial airliners with missiles at an international airport. An important feature of attacks on commercial flights is that...

This paper examines the adequacy of an evolutionary-oriented notion of rationality—ecological rationality—that has recently been proposed in economics. Ecological rationality is concerned with what it is rational to do, and in this sense is a version of what philosophers call ‘practical...

Societies with a higher level of income inequality tend to have lower levels of intergenerational income mobility. Known as the Great Gatsby Curve, this negative relationship in part derives from greater intergenerational economic heritance among the poor. Societies with higher rates of relative...