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Buy Low, Sell High: The Development of an Informal Theory of Economics
Author(s) -
Thompson Douglas R.,
Siegler Robert S.
Publication year - 2000
Publication title -
child development
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 3.103
H-Index - 257
eISSN - 1467-8624
pISSN - 0009-3920
DOI - 10.1111/1467-8624.00174
Subject(s) - psychology , child development , key (lock) , cognitive development , contrast (vision) , developmental psychology , social psychology , cognition , ecology , neuroscience , artificial intelligence , computer science , biology
Two experiments were conducted to examine the development of economic understanding among 5‐, 7‐, and 9‐year‐olds ( n = 31, 29, and 32, respectively). Most 5‐year‐olds exhibited understanding of the goal of acquiring desired goods but not of the goals of seeking profits, acquiring goods inexpensively, or competing successfully with other sellers. In contrast, most 7‐year‐olds and a large majority of 9‐year‐olds showed understanding of all of these concepts. The older children's understanding of these key concepts and the relations among them suggested that they had constructed an informal theory of economics, qualitatively different from the psychologically based understanding of the 5‐year‐olds. Increased information‐processing skills appeared to be among the sources of this new understanding.