In this article, we provide a broad overview of the interplay among cognition, belief systems, and institutions, and how they affect economic performance. We argue that a deeper understanding of institutions’ emergence, their working properties, and their effect on economic and political outcomes should begin from an analysis of cognitive processes. We explore the nature of individual and collective learning, stressing that the issue is not whether agents are perfectly or boundedly rational, but rather how human beings actually reason and (...) choose, individually and in collective settings. We then tie the processes of learning to institutional analysis, providing arguments in favor of what can be characterized as “cognitive institutionalism.” Besides, we show that a full treatment of the phenomenon of path dependence should start at the cognitive level, proceed at the institutional level, and culminate at the economic level. (shrink)

This article provides a broad overview of the interplay among cognition, belief systems and institutions, fleshing out a position best characterized as 'cognitive institutionalism'. We argue that a deeper understanding of institutions, emergence, their working properties and their effect on economic performance should start with the analysis of cognitive processes. Exploring the nature of individual and collective learning the article suggests that the issue is not whether agents are perfectly or boundedly rational, but rather how human beings actually reason and (...) choose. We also show how a full treatment of the phenomenon of path dependence should look like; there is a path dependence at the cognitive level, at the institutional level and at the economic level and there are links among them. (shrink)

One of the most debated questions in psychology and cognitive science is the nature and the functioning of the mental processes involved in deductive reasoning. However, all existing theories refer to a specific deductive domain, like syllogistic, propositional or relational reasoning.Our goal is to unify the main types of deductive reasoning into a single set of basic procedures. In particular, we bring together the microtheories developed from a mental models perspective in a single theory, for which we provide a formal (...) foundation. We validate the theory through a computational model (UNICORE) which allows fine‐grained predictions of subjects' performance in different reasoning domains.The performance of the model is tested against the performance of experimental subjects—as reported in the relevant literature—in the three areas of syllogistic, relational and propositional reasoning. The computational model proves to be a satisfactory artificial subject, reproducing both correct and erroneous performance of the human subjects. Moreover, we introduce a developmental trend in the program, in order to simulate the performance of subjects of different ages, ranging from children (3–6) to adolescents (8–12) to adults (>21). The simulation model performs similarly to the subjects of different ages.Our conclusion is that the validity of the mental model approach is confirmed for the deductive reasoning domain, and that it is possible to devise a unique mechanism able to deal with the specific subareas. The proposed computational model (UNICORE) represents such a unifying structure. (shrink)