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Environment as a Resource, not a Constraint

Environment as a Resource, not a Constraint
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Year:    2021

Author:    Remic, Blaž

Journal of Contextual Economics – Schmollers Jahrbuch, Vol. 141 (2021), Iss. 1-2 : pp. 85–107

Abstract

In this article I argue that the study of contextual issues in economics has been limited in its scope because economists have mostly conceived of the environment as a constraint on individual action. I identify and discuss three conventions that pull economists into such conceptualization of the environment. For each of the three I provide ways forward for contextual economics to avoid the pull. I then employ insights from the recent cognitive science on socially extended mind to demonstrate how the project of contextual economics as envisioned in this article can benefit from reconceptualizing the environment not as a constraint on individual action but as a resource for constituting socially extended cognitive processes. Rather than being simply about gathering more and better data, contextual economics can offer a powerful approach for studying social world based on entangled interactions between individual actors and their environments.

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Journal Article Details

Publisher Name:    Global Science Press

Language:    English

DOI:    https://doi.org/10.3790/schm.141.1-2.85

Journal of Contextual Economics – Schmollers Jahrbuch, Vol. 141 (2021), Iss. 1-2 : pp. 85–107

Published online:    2021-01

AMS Subject Headings:    Duncker & Humblot

Copyright:    COPYRIGHT: © Global Science Press

Pages:    23

Keywords:    B41 B53 B59 D02 D91 Z13 Contextual Economics Behavioral Economics Methodology Cognitive Institutions Socially Extended Mind Scientific Integration

Author Details

Remic, Blaž

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  120. Slaby, J. and S. Gallagher. 2015. “Critical Neuroscience and Socially Extended Minds.” Theory, Culture & Society 32 (1): 33 – 59.  Google Scholar
  121. Smith, V. L. and B. J. Wilson. 2019. Humanomics: Moral Sentiments and the Wealth of Nations for the Twenty-First Century. Cambridge: Cambridge University Press.  Google Scholar
  122. Stigler, G. J. and G. S. Becker. 1977. “De Gustibus Non Est Disputandum.” American Economic Review 67 (2): 76 – 90.  Google Scholar
  123. Sturn, R. 2016. “Scarce Means, Competing Ends: Lord Robbins and the Foundations of Contextual Economics.” Journal of Contextual Economics – Schmollers Jahrbuch 136 (1): 59 – 86.  Google Scholar
  124. Sugden, R. 2018. The Community of Advantage: A Behavioural Economist’s Defence of the Market. Oxford: Oxford University Press.  Google Scholar
  125. Thévenot, L. 2001. “Pragmatic Regimes Governing the Engagement with the World.” In The Practice Turn in Contemporary Theory, edited by T. R. Schatzki, K. Knorr-Cetina, and E. von Savigny, 56 – 73. London: Routledge.  Google Scholar
  126. Thornton, P. H., W. Ocasio, and M. Lounsbury. 2012. The Institutional Logics Perspective: A New Approach to Culture, Structure, and Process. Oxford: Oxford University Press.  Google Scholar
  127. Tversky, A. and D. Kahneman. 1981. “The Framing of Decisions and the Psychology of Choice.” Science 211 (4481): 453 – 8.  Google Scholar
  128. Tversky, A. and D. Kahneman. 1983. “Extensional Versus Intuitive Reasoning: The Conjunction Fallacy in Probability Judgment.” Psychological Review 90 (4): 293 – 315.  Google Scholar
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  130. Williamson, O. E. 2000. “The New Institutional Economics: Taking Stock, Looking Ahead.” Journal of Economic Literature 38 (3): 595 – 613.  Google Scholar
  131. Wilson, M. 2002. “Six Views of Embodied Cognition.” Psychonomic Bulletin & Review 9 (4): 625 – 36.  Google Scholar
  132. Zawidzki, T. W. 2013. Mindshaping: A New Framework for Understanding Human Social Cognition. Cambridge: MIT Press.  Google Scholar
  133. Becker, G. S. 1993. “Nobel Lecture: The Economic Way of Looking at Behavior.” Journal of Political Economy 101 (3): 385 – 409.  Google Scholar
  134. Berg, N. and G. Gigerenzer. 2010. “As-if Behavioral Economics: Neoclassical Economics in Disguise?” History of Economic Ideas 18 (1): 133 – 65.  Google Scholar
  135. Boltanski, L. and L. Thévenot. 2006. On Justification: Economies of Worth. Princeton: Princeton University Press.  Google Scholar
  136. Carpendale, J. I. M., M. Frayn, and P. Kucharczyk. 2016. “The Social Formation of Human Minds.” In The Routledge Handbook of Philosophy of the Social Mind, edited by J. Kiverstein. London: Routledge.  Google Scholar
  137. Cazzolla Gatti, R., R. Koppl, B. D. Fath, S. Kauffman, W. Hordijk, and R. E. Ulanowicz. 2020. “On the Emergence of Ecological and Economic Niches.” Journal of Bioeconomics 22 (2): 99 – 127.  Google Scholar
  138. Chater, N., T. Felin, D. C. Funder, G. Gigerenzer, J. J. Koenderink, J. I. Krueger, D. Noble, S. A. Nordli, M. Oaksford, B. Schwartz, K. E. Stanovich, and P. M. Todd. 2018. “Mind, rationality, and cognition: an interdisciplinary debate.” Psychonomic Bulletin & Review 25 (2): 793 – 826.  Google Scholar
  139. Chetty, R. 2015. “Behavioral Economics and Public Policy: A Pragmatic Perspective.” American Economic Review: Papers & Proceedings 105 (5): 1 – 33.  Google Scholar
  140. Clark, A. 1997. Being There: Putting Brain, Body, and World Together Again. Cambridge: MIT Press.  Google Scholar
  141. Clark, A. and D. Chalmers. 1998. “The Extended Mind.” Analysis 58 (1): 7 – 19.  Google Scholar
  142. Collins, R. 2004. Interaction Ritual Chains. Princeton: Princeton University Press.  Google Scholar
  143. Davis, J. B. 2011. Individuals and Identity in Economics. Cambridge: Cambridge University Press.  Google Scholar
  144. Davis, J. B. 2016. “Economics, Neuroeconomics, and the Problem of Identity.” Journal of Contextual Economics – Schmollers Jahrbuch 136 (1): 15 – 31.  Google Scholar
  145. Dekker, E. and P. Kuchař. 2020. “Lachmann and Shackle: On the Joint Production of Interpretation Instruments.” Research in the History of Economic Thought and Methodology 37B: 25 – 42.  Google Scholar
  146. Denzau, A. T. and D. C. North. 1994. “Shared Mental Models: Ideologies and Institutions.” Kyklos 47 (1): 3 – 31.  Google Scholar
  147. Dewey, J. 1938. Experience and Education. New York: Kappa Delta Pi.  Google Scholar
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  425. Hoff, K. and J. E. Stiglitz. 2016. “Striving for Balance in Economics: Towards a Theory of the Social Determination of Behavior.” Journal of Economic Behavior & Organization 126B: 25 – 57.  Google Scholar
  426. Hutchins, E. 2014. “The Cultural Ecosystem of Human Cognition.” Philosophical Psychology 27 (1): 34 – 49.  Google Scholar
  427. Infante, G., G. Lecouteux, and R. Sugden. 2016. “Preference Purification and the Inner Rational Agent: A Critique of the Conventional Wisdom of Behavioural Welfare Economics.” Journal of Economic Methodology 23 (1): 1 – 25.  Google Scholar
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  430. Kiverstein, J. 2018. “Extended Cognition.” In The Oxford Handbook of 4E Cognition, edited by A. Newen, L. De Bruin, and S. Gallagher, 19 – 40. Oxford: Oxford University Press.  Google Scholar
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  444. Pezzulo, G. and P. Cisek. 2016. “Navigating the Affordance Landscape: Feedback Control as a Process Model of Behavior and Cognition.” Trends in Cognitive Sciences 20 (6): 414 – 24.  Google Scholar
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  450. Slaby, J. and S. Gallagher. 2015. “Critical Neuroscience and Socially Extended Minds.” Theory, Culture & Society 32 (1): 33 – 59.  Google Scholar
  451. Smith, V. L. and B. J. Wilson. 2019. Humanomics: Moral Sentiments and the Wealth of Nations for the Twenty-First Century. Cambridge: Cambridge University Press.  Google Scholar
  452. Stigler, G. J. and G. S. Becker. 1977. “De Gustibus Non Est Disputandum.” American Economic Review 67 (2): 76 – 90.  Google Scholar
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  457. Tversky, A. and D. Kahneman. 1981. “The Framing of Decisions and the Psychology of Choice.” Science 211 (4481): 453 – 8.  Google Scholar
  458. Tversky, A. and D. Kahneman. 1983. “Extensional Versus Intuitive Reasoning: The Conjunction Fallacy in Probability Judgment.” Psychological Review 90 (4): 293 – 315.  Google Scholar
  459. Tversky, A. and D. Kahneman. 1986. “Rational Choice and the Framing of Decisions.” Journal of Business 59 (4): S251–S278.  Google Scholar
  460. Williamson, O. E. 2000. “The New Institutional Economics: Taking Stock, Looking Ahead.” Journal of Economic Literature 38 (3): 595 – 613.  Google Scholar
  461. Wilson, M. 2002. “Six Views of Embodied Cognition.” Psychonomic Bulletin & Review 9 (4): 625 – 36.  Google Scholar
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Section Title Page Action Price
Blaž Remic: Environment as a Resource, not a Constraint 85
Abstract 85
1. Introduction 85
2. Circumventing the Perceived Danger of Relativism: Environment as a Constraint 87
3. Three Problematic Conventions Underlying the Constraint-based Views, and How to Overcome Them 89
3.1 Convention 1: The Analysis Starts by Separating and Isolating the Variables 90
3.2 Convention 2: Veridical Perception Is the Benchmark 92
3.3 Convention 3: Cognition Is a Matter of the Mental Processes in Individual Minds 85
4. “Context Matters” Reconsidered: Environment as a Resource 85
4.1 Environment Is an Expanding Opportunity Set of Potential Actions 85
4.2 Environment Serves as an External Resource of Embodied Knowledge 85
4.3 Environment Has an Active Role in the Cognitive Processes 85
5. Conclusion 85
References 86