Cambridge in Mind: Economics and Psychology on the Cam

Abstract

This chapter examines the interactions that occurred between economics and psychology in Cambridge from the last quarter of the nineteenth century up until the Second World War. It does so by examining the work of four Cambridge economists (Henry Sidgwick, Alfred Marshall, A.C. Pigou and John Maynard Keynes) and three Cambridge psychologists (James Ward, G.F. Stout and Charles Myers) in parallel, in order to detect any similarity of approach or theme in their work. The first section of the chapter documents the influence of the three psychologists at Cambridge, and the second section examines how the four Cambridge economists utilized concepts from psychology in their economic theory. Some concerns common to both Cambridge economists and psychologists are detected, and some significant differences in how psychology was used by the four economists are outlined.

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