- (written as Cognitive Psychology)A relatively new branch of psychology (dating from the late 1960s) that theorizes and investigates mental processes, often using formal experimental methods. Of importance for economists is the way in which cognitive psychologists like Daniel Kahneman and Amos Tversky, both of whom are economics Nobel laureates, have investigated decision-making and choice. Regret and prospect theory are but two of the significant developments. The Bibliography contains several references to the work of these and other cognitive psychologists.
- noun a psychological movement which infers people’s thought processes from their behaviour, and believes that these thought processes can be affected by behaviour and/or changed to affect behaviour.