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A Cognitive Model of Economics

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A Cognitive Model of Economics A cognitive model of economics Lorin Friesen, mentalsymmetry.com, Abbotsford, BC, Canada doi: 10.13140/RG.2.2.17044.83847 Abstract Economics is typically regarded as a collection of partially related theories. However, if economics is analyzed from a cognitive perspective, then it becomes evident that these theories form a cognitively natural, coherent package. The theory of mental symmetry is a cognitive model based in seven interacting cognitive modules. This theory is used to analyze most of the fundamental concepts of micro- and macroeconomics, as well as behavioral economics and neuroeconomics. Economics can be explained primarily as a focus upon the interaction between the cognitive module that provides motivation and the cognitive module that emphasizes choice. Economics recognizes the existence of other cognitive modules but regards them as outside of the realm of economics. A fuller cognitive picture can be gained by including the activity of these other cognitive modules. Going further, a cognitive basis for the institutions of macroeconomics can be found by viewing these institutions from the perspective of abstract technical thought. And this cognitive basis provides a framework for applying economics to the modern world of information and technology. Introduction The theory of mental symmetry began as a system of cognitive styles (Friesen, 1986). Mental symmetry maps in detail onto current neurology (Friesen, 2019). It has been used to explain a number of aspects of language and culture (Friesen, 2013). It has been used to analyze theology from a cognitive perspective (Friesen, 2015) and to develop an integrated philosophy of science and theology (Friesen, 2020). And it has been applied to a number of additional topics at a less rigorous level, which can be accessed on the mentalsymmetry website. This paper will use the theory of mental symmetry to analyze most of the basic principles of economics. Mental symmetry is a cognitive meta-theory that interprets human thought as seven interacting high-level cognitive modules. Basic economics will be defined as the content that is taught in the typical first-year university microeconomics and macroeconomics courses. This paper shows that basic economics can be interpreted primarily as one of the seven cognitive modules (Exhorter thought) interacting with one other module (Contributor thought). Mental symmetry is a meta-theory and not a theory. A new theory typically replaces an old theory, rendering the old theory obsolete. A meta-theory acts as a general framework within which other theories can be placed. Theories that are placed within a meta-theory continue to be relevant as specialized viewpoints that provide a more detailed view of some aspect of the meta-theory. The goal of this paper is not to introduce new economic concepts, but rather to take the existing concepts of economics, explain them from a cognitive perspective, and then discuss the larger cognitive picture that emerges. Taking an entire field and placing it within a new theory is highly unusual. 2 Obviously, it is not possible to discuss an entire field within a single academic paper. But it is possible to examine the basic principles of some field within a long academic paper. The discussion of economics in this paper will be largely limited to principles that are taught in the two introductory courses of microeconomics and macroeconomics, ensuring that the economic concepts that are being analyzed are well-known and widely accepted. Two primary references were used when researching this paper: the Khan Academy courses on AP microeconomics and AP macroeconomics, and the openstax second edition textbooks on microeconomics and macroeconomics. These textbooks were chosen because they are representative and freely available, and not because they contain any unusual information. This paper will be quoting extensively from the two openstax textbooks. When facts from some specialization are placed within a new paradigm, then it is easy to twist these facts so that they fit better within the new paradigm. When facts have to be modified to fit a new paradigm, then this is a sign of an inadequate paradigm. Quoting extensively from an economics textbook makes it clear that existing economic facts are being used without being twisted or modified. These economic quotes also make it easier to distinguish between the facts of economics and the theory of mental symmetry, as well as assist in translating concepts between these two fields. Whenever a standard term of economics is mentioned, these this term will be put in bold. In most cases, these terms are also placed in bold in the original textbooks. That leads to the more technical matter of referencing. Normal practice when quoting directly from some author is to mention the first author, the publishing year, and the page number from which the quote is taken. In this case, that would be either (Greenlaw, 2018, p.xx) or (Greenlaw, 2017, p.xx). But repeating this throughout the paper might give the mistaken impression that the author is the discoverer of a vast amount of original material, which is not the case. It might also give the mistaken impression that I am focusing inappropriately upon this author, or even possibly plagiarizing from this author. But that is also not the case. Instead, I am quoting from a textbook, and the only way to make it clear that one is quoting from an entire textbook is to quote many passages from many sections of the textbook. Therefore, instead of using (Greenlaw, 2018, p.xx) or (Greenlaw, 2017, p.xx), I will be using (micro, p.xx) or (macro, p.xx). This flows better as well as making it clear which concepts are being taken from a micro-economics textbook or a macro-economics textbook. Of course, authors of a textbook still need to be acknowledged as academic experts who are presenting the established concepts of a field in a coherent and comprehensible manner. Therefore, conventional references have also been included in the reference section. Looking at this more generally, I have found over the years that the approach taken by mental symmetry does not fit into the normal methodology of academia. I have also found that attempting to understand this mismatch has proved useful for deciphering the nature of academic thought. The book that best describes my experiences is Thomas Kuhn’s well-known volume on paradigms and paradigm shifts (Kuhn, 1970), and this paper will be referring several times to that book. This paper will discuss an aspect of mental symmetry which has been largely ignored in other papers about mental symmetry. Mental symmetry began with a detailed look at personality traits. Abstract 3 technical thought and its relationship to paradigms have been discussed in other papers and books. This paper will emphasize concrete technical thought as well as the interaction between Exhorter thought and Contributor thought. Placing the limited perspective of economics within a general theory of cognition will clarify how the field of economics interacts with other fields of thought as well as point out some inherent strengths and weaknesses of economic theory. The thesis of this paper is that economics can be explained primarily as the interaction between Exhorter and Contributor thought as viewed from Contributor thought. Economics does recognize other modes of thought, but it regards them as outside of the realm of economics, and it attempts to interpret these outside effects in terms of the interaction between Exhorter and Contributor thought. The next section introduces the theory of mental symmetry and has been copied from the paper on science and theology (Friesen, 2020). It explains terms such as ‘Exhorter’, ‘Contributor’, and ‘concrete technical thought’. Mental Symmetry The theory of mental symmetry originated as a system of cognitive styles that divides people into seven different categories. This system of cognitive styles was first developed in the 1970s and is still being taught, primarily in religious circles. Lane Friesen (brother of Lorin Friesen) initially expanded this system of cognitive styles by analyzing approximately 200 biographies in the 1980s (Friesen, 1986). This system of cognitive styles turned into a cognitive model when it was realized that the fundamental traits of each cognitive style correspond to the general functioning of a specific brain region. Since everyone has a complete brain, this led to the conclusion that cognitive style relates in some way to consciousness: Everyone has all seven cognitive modules; cognitive style is determined by the cognitive module in which a person is conscious, consciousness being defined as awareness and control. Thus, one can speak either of cognitive styles or of cognitive modules. The explaining power of mental symmetry emerges when one thinks in terms of cognitive modules. The theory of mental symmetry is summarized by a simple diagram known as the diagram of mental symmetry (Figure 1). The seven cognitive modules are each given a label that describes a major cognitive trait: Teacher, Exhorter, Mercy, Server, Contributor, Perceiver, and Facilitator. Studying personality has revealed details that are not explicitly shown by the diagram of mental symmetry, but this diagram still remains the best way to summarize the traits in a simple manner, and the diagram has been arranged in a manner that maps in a general way onto neurology. Thus, the seven labels (Teacher, Exhorter, Mercy, etc.) in the diagram of mental symmetry should be viewed as large-scale cognitive modules each composed of several interacting parts. The term ‘Mercy thought’ will be used to refer to a cognitive module, while the term ‘Mercy person’ refers to a cognitive style. The diagram uses two primary axes: analytical versus associative, and emotion versus confidence. Analytical versus associative corresponds to left hemisphere versus right hemisphere. This is a crude distinction, but it remains a useful one. Many cognitive tasks involve extensive interaction between the corresponding regions in the left and right hemispheres, but the underlying principle remains that the two hemispheres are using different strategies to perform similar tasks.
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