Cognitive Economics: The Mental Transformation in Economics
Chapter from the book: Polat, M. (ed.) 2025. Modern Microeconomics: From Theory to Practice.

Semra Koçak
Iğdır University
Mehmet Polat
Iğdır University

Synopsis

Cognitive economics is an interdisciplinary field that explains individuals' economic behavior not only through observed preferences and market outcomes, but also through processes of perception, attention, memory, learning, inference, and mental representation. Cognitive economics builds a strong bridge between economics and other sciences. In this context, cognitive economics draws upon the empirical observations of behavioral economics, the brain imaging techniques (fMRI, EEG) of neuroeconomics, the decision-making models of cognitive psychology, and the computational approaches of artificial intelligence. This synthesis allows theoretical models to be tested against experimental and neurological data. In the future, as the economic value of cognitive attributes in human capital increases, cognitive capital measurements become policy tools, and normative and institutional frameworks for human-artificial intelligence collaboration are developed, the cognitive economy will gain even more importance.

This study systematically considers the basic framework of cognitive economics and the research agenda. The study reveals the historical development line by basing the theoretical foundations of the field on behavioral economics and limited rationality theories. Specifically, it answers the question of why the field is important. Because cognitive economics aims to increase the effectiveness of policies and market strategies by offering more realistic models of human behavior. However, this discipline also faces obstacles such as methodological challenges, ethical boundaries and new data requirements. The study draws attention to the new types of data that are needed and the new competencies that economists should have in order to analyze these data.

How to cite this book

Koçak, S. & Polat, M. (2025). Cognitive Economics: The Mental Transformation in Economics. In: Polat, M. (ed.), Modern Microeconomics: From Theory to Practice. Özgür Publications. DOI: https://doi.org/10.58830/ozgur.pub1120.c4537

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Published

December 29, 2025

DOI