nep-cbe New Economics Papers
on Cognitive and Behavioural Economics
Issue of 2005‒04‒09
five papers chosen by
Marco Novarese
Universita del Piemonte Orientale

  1. Performance Appraisal Research: A Critical Review of Work on “The Social Context and Politics of Appraisal” By Jenkins , Alan
  2. Elements of a cognitive theory of the firm By Nooteboom,Bart
  3. Adaptive build-up and breakdown of trust : an agent based computational approach By Gorobets,Alexander; Nooteboom,Bart
  4. Learning to trust By Nooteboom,Bart
  5. The Brain as a Hierarchical Organization By Isabelle Brocas; Juan D. Carrillo

  1. By: Jenkins , Alan (ESSEC Business School)
    Abstract: This paper reviews existing literatures on the analysis of performance appraisal (PA) paying special attention to those which try to take into account the “social context” of appraisal systems and processes. The special place of political action within these processes is underlined and the different levels at which politics need to be considered in research are outlined. Research on politics is considered and shown to lack an adequate consideration of the social relations involved in the reciprocal interactions between PA tools and processes and users interpretation and manipulation of them.
    Keywords: Performance appraisal; Social context; Politics
    JEL: M12 M54
    Date: 2005–03
  2. By: Nooteboom,Bart (Tilburg University, Center for Economic Research)
    Abstract: This paper presents elements of a cognitive theory of the firm, from the perspective of embodied cognition. It entails the notion of 'cognitive distance' between people that have developed their cognition in different environments. This yields the notion of the firm as a 'focusing device', to reduce cognitive distance for the sake of efficient collaboration and for the resolution of conflict. This focus yields organisational myopia, which needs to be compensated by outside relations, between firms, at some cognitive distance. Next, on the basis of principles derived from cognitive science, this paper tries to resolve the problem of combining structural stability and change, which in economics is known as the problem of combining exploitation and exploration. This provides the basis for a theory of learning and innovation in organisations and economies. The theory is elaborated on the basis of the notion of 'scripts', also derived from cognitive science.
    JEL: D21 D83 M13
    Date: 2005
  3. By: Gorobets,Alexander; Nooteboom,Bart (Tilburg University, Center for Economic Research)
    Abstract: This article employs Agent-Based Computational Economics (ACE) to investigate whether, and under what conditions, trust is viable in markets. The emergence and breakdown of trust is modeled in a context of multiple buyers and suppliers. Agents develop trust in a partner as a function of observed loyalty. They select partners on the basis of their trust in the partner and potential profit. On the basis of realized profits, they adapt the weight they attach to trust relative to profitability, and their own trustworthiness, modeled as a threshold of defection. Trust turns out to be viable under fairly general conditions.
    JEL: C63 D23 L14 L22 L24
    Date: 2005
  4. By: Nooteboom,Bart (Tilburg University, Center for Economic Research)
    Abstract: Trust is full of puzzle and paradox. Trust is both rational and emotional. Trust can go beyond calculative self-interest, but has its limits. People may want to trust, while they may also feel threatened by it. If trust is not in place prior to a relationship, on the basis of institutions, prior experience, or reputation, it has to be built up, in specific relations. For that one needs to learn, in the sense of building empathy, and perhaps a certain degree of identification. In an attempt at a better understanding of the puzzles and processes of trust, this chapter applies the perspective of 'embodied cognition', and insights from mental 'framing' and decision heuristics from social psychology.
    JEL: B52 D23 D83
    Date: 2005
  5. By: Isabelle Brocas; Juan D. Carrillo
    Date: 2005–04–05

This nep-cbe issue is ©2005 by Marco Novarese. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
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NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.