Published by: Economia - History/Methodology/Philosophy, Association Economia
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Key Take Aways
The concept of attention in economic thought is deeply rooted in philosophical and psychological traditions, notably from Herbert Simon and Friedrich Hayek, before entering mainstream economics.
Limited attention is recognised as a fundamental cognitive resource, impacting decision-making and organisational structures within financial services.
Herbert Simon’s concept of bounded rationality highlights that organisations and individuals can only process a fraction of available information, necessitating heuristics and simplification strategies.
Friedrich Hayek’s cognitive psychology indicates that perception and classification are inherently limited, shaping market processes as the realisation of tacit, distributed knowledge rather than explicit data aggregation.
Michael Polanyi’s exploration of tacit knowledge and subsidiary awareness underlines the impo...
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