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One shortcoming in economics is the inability to model cognitive costs. This is best visible in game theory - no model of cognitive costs has gained traction in the last few decades despite the desire for one.

The closest that I recall is representing strategies with finite state machine and having a preference for strategies requiring fewer states. A main difficulty there is mapping strategies to FSA.




Transaction costs and cost/benefit analysis of information are a thoroughly studied part of economics. I'm not even an econ major and it was covered in my college CS education


inability to model cognitive costs.

Read: "unwilling to sacrifice theoretical purity in order to build actually realistic models"




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