This book seeks to explain long-term economic development and institutional change in terms of the cognitive features of human learning and communication processes. Martens links individual cognitive processes to macroeconomic growth theories, including economies of scale and scope, and to theories of institutional development based on asymmetric information in production processes and economies of scale in enforcement technology.
With considerable flair, Bertin Martens has applied the hot new area of psychological and behavioural economics to notions of growth and development and has created a unique and impressive volume.
1. Introduction Part One: Knowledge and Economics 2. The Uneasy Relationship Between Knowledge and Economics 3. The Role of Distributed Knowledge in Economics Part Two: The Principle of Cognitive Economy 4. Knowledge and the Principle of Cognitive Economy 5. Communication and Distributed Knowledge 6. The Economy as a Knowledge Communication System 7. Economies of Scope Part Three: The Cognitive Mechanics of Institutional Development 8. The Role of Institutions 9. The State's Monopoly on Violence 10. Endogenous Institutions