Andrew Caplin

Book

Discover my latest book, “An Introduction to Cognitive Economics: The Science of Mistakes”

Explore 10 engaging chapters and listen to accompanying audio insights.

About this Book

This book introduces readers to “cognitive economics,” an emerging interdisciplinary science rooted in economic, psychological, and data scientific foundations. Economist Andrew Caplin presents new approaches for collaboration to solve real-world problems and bridge theoretical knowledge with practical outcomes.

Inviting socially-conscious citizens, business leaders, scholars, and policymakers to contribute, this book highlights why cognitive economics matters and how readers can support its growth.

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Chapters and Podcasts

  • Chapter 1 : Introduction to Cognitive Economics
    • 1.1 What is Cognitive Economics?
    • 1.2 Why Does Cognitive Economics Matter?
    • 1.3 An Accelerator for Cognitive Economics
    • 1.4 Why is Cognitive Economics Challenging?
    • 1.5 What New Forms of Data does Cognitive Economics Need?
    • 1.6  Is Cognitive Economics Different from Behavioral Economics?
  • Chapter 2 : Cognitive Household Finance
    • 2.1 The Life Cycle Model of Savings and Wealth
    • 2.2 The Cognitive Life Cycle Model
    • 2.3 Measurement Challenges
    • 2.4 Out of (Self) Control
    • 2.5 Ignorant but far from Blissful
    • 2.6 Our Own Worst Enemies?
  • Chapter 3 : Measuring and MInimizing Mistakes
    • 3.1 Mistakes in Complex Choices
    • 3.2 Appeals Courts and Error Correction
    • 3.3 Indexing of Complex Information Reduces Injustice
    • 3.4 The Duty to Understand
    • 3.5 Bloom’s Taxonomy and the Goal of Communication
    • 3.6 Cognitive Economics of Effective Communication
    • 3.7 Ranking Presentations by Clarity
    • 3.8 Online Privacy Disclosures
  • Chapter 4 : Cognitive Economics at Work
    • 4.1 The Economic Model of Earnings
    • 4.2 Human Capital and Cognitive Factors of Production
    • 4.3 Decision-Making Skills: the Measurement Challenge
    • 4.4 A Research Template for Cognitive Labor Economics
    • 4.5 Economic Decision-Making Skill and Comparative Advantage
    • 4.6 Economic Decision-Making Skill and Earnings
    • 4.7 A Procedural Amendment
    • 4.8 Teamwork, Social Skills, and Earnings
  • Chapter 5 : Cognitive Capital and Human-AI Interactions
    • 5.1 The Human-AI Decision-Making Pipeline
    • 5.2 Human-AI Interactions AI and Cognitive Economics
    • 5.3 Cognitive Economics of Data Generation and Labeling
    • 5.4 The Bilateral Alignment Problem
    • 5.5 Human-AI Decision-Making Architectures
  • Chapter 6 : Work Skills for the Cognitive Economy
    • 6.1 AI and the Skill Premium
    • 6.2 The Importance of Calibrated Beliefs
    • 6.3 The ABCs of Who Benefits from Working with AI
    • 6.4 Algorithmic Awareness
    • 6.5 Adaptability, Resilience, and Search Skills
    • 6.6 Beliefs about Future Earnings
  • Chapter 7 : Cognitive Economics of Teaching
    • 7.1 Teaching Calibration
    • 7.2 Testing Properly
    • 7.3 Teaching Students the Value of an Education
    • 7.4 Teaching Cognitive Economics
  • Chapter 8 : Cognitive Economics Takes Off
    • 8.1 Stage 1: Samuelson and Revealed Preference
    • 8.2 Stage 1.5: The Winter of Cognitive Economic Discontent
    • 8.3 Stage 2: Preconditions for Takeoff
    • 8.4 Stage 3: Takeoff to Sustained Growth
    • 8.5 Stage 4: The Drive to Maturity
  • Chapter 9 : Next Steps in Research, Business, and Policy
    • 9.1 Research Area 1: Human-AI Decision-Making Pipelines
    • 9.2 Research Area 2: Is Ignorance about AI Harming Careers?
    • 9.3 Research Area 3: Teaching for the Cognitive Economy
    • 9.4 Business and Policy Applications
  • Chapter 10 : Accelerating Cognitive Economics: Why Now, and How?
    • 10.1 An Accelerator for Cognitive Economics
    • 10.2 My Invitation to You
    • 10.3 A Confession and A Claim