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An assessment on rational expectations and perception engineering in the cyber-capitalist age

Year 2023, Volume: 5 Issue: 1, 10 - 20, 30.06.2023
https://doi.org/10.58251/ekonomi.1252661

Abstract

In recent years, studies in economics have revealed that analyses in psychology, sociology, religion, and ethics have begun to describe trends in the markets, household preferences, entrepreneurships, and investor decisions. These studies are referred to be results of the critical dynamics put forward by the "Rational Expectations Theory." Although conditional rationality is widely assumed in economic analysis, the assumptions of rational expectations as a unique approach allow for new perspectives of bias on the perception engineering which is being realised through social media for both political or economic operations. Percepion engineering has become easy and widespread in this new age of cyber-capitalism in which artificilal intelligence (AI) based Management Information Systems (MIS) and IoT tend to dominate pervasively for economic, political or religious reasons. This study asserts that investment decisions, political tendencies and economic preferences may not be rational due to exposure to perception engineering through innovative technology of algorithms and social media. Therefore, in today's cyber-capitalist ecosystems, the generation of manipulated social consent has been incredibly enhanced by hacking, collecting, accumulating, changing, controlling, and disseminating information for propaganda and marketing purposes over social media. In this multidiscipinary study, perception engineering that has become a part of artificial intelligence-assisted social engineering processes, is concluded to be the key spoiler of rational expectations of economic agents. In this context, possible measures are developed and suggested.

References

  • Aksakallı G., (2020) Sosyal Medya Algimizi Nasil Yönetiyor?, https://www.guvenliweb.org.tr/blog-detay/sosyal-medya-algimizi-nasil-yonetiyor?. Access on 15 January 2023.
  • Arğın, E. (2021). Algi, Sosyal Algi ve Algi Yönetiminin Sosyal Medyada Kullanimi, Iksad publications, Isparta Turkiye.
  • Bakan, İ. & Kefe, İ. (2012). Kurumsal Açıdan Algı ve Algı Yönetimi . Kahramanmaraş Sütçü İmam Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi, 2 (1), 19-34. Retrieved from http://iibfdergisi.ksu.edu.tr/tr/pub/issue/10264/125884.
  • Baltaci, Ö. (2029). The Predictive Relationships between the Social Media Addiction and Social Anxiety, Loneliness, and Happiness, International Journal of Progressive Education, v15 n4 p73-82 2019, https://eric.ed.gov/?id=EJ1224299
  • Baron, A. R. (2000). Psychological Perspectives on Entrepreneurship: Cognitive and Social Factors in Entrepreneurs' Success Current directions in psychological science, 9(1), 15-18, https://doi.org/10.1111/1467-8721.00050.
  • Bayrakcı, O. (2021). Perception Management in the Relationship of Power and Hegemony. Van Yüzüncü Yıl University the Journal of Social Sciences Institute, 52, 93-108.
  • Blanchard, O. J. & Watson M. W. (1982). Bubbles, Rational Expectations and Financial Markets. Crises in the Economic and Financial Structure, Paul Wachtel, editor, pp. 295-316. Lexington, MA: D.C. Heathand Company, Bull, C., & Frydman, R. (1983). The Derivation and Interpretation of the Lucas Supply Function. Journal of Money, Credit and Banking, 15(1), 82–95. https://doi.org/10.2307/1992142
  • Cukierman A., Lustenberger T. & Meltzer A. (2020). The Permanent-Transitory Confusion: Implications for Tests of Market Efficiency and for Expected Inflation During Turbulent and Tranquil Times. In: Arnon A., Young W., van der Beek K. (eds) Expectations. Springer Studies in the History of Economic Thought. Springer, Cham. https://doi.org/10.1007/978-3-030-41357-6_12
  • Elsbach, K.D., (2003). Organizational Perception Management, Research in Organization Behavior, 25, 297-332. Erbay, Muhammet & M. Mert Aslan (2019) “Algı Yönetiminde Sosyal Değerlerin Etkisi”. Ulakbilge, 38 (Temmuz): s. 497-504. doi: 10.7816/ulakbilge-07-38-04.
  • Gao, H., Xu, Y., Xu, S., & Mao, K. (2021). Social Media Analytics with Artificial Intelligence: A Review. IEEE Transactions on Computational Social Systems, 8(3), 607-620.
  • Gencoglu, O., & Hancer, C. (2020). Artificial intelligence in finance: A review. International Journal of Financial Engineering, 7(4), 2050020.
  • Gürsoy, B. G. (2020). Algi Yönetimi Türü olarak Algida Zihinsel Çöküntü ve Toplumsal Ayrişmada Beklentiyönetimi, Master Thesis, Police Academy, Gazi.
  • Işık, C. (2013). The importance of creating a competitive advantage and investing in information technology for modern economies: An ARDL test approach from Turkey. Journal of the Knowledge Economy, 4, 387-405.
  • Işık, C. & Türkmendağ, T. (2016). Atatürk Üniversitesi turizm fakültesi öğrencilerinin bireysel yenilikçilik algılarının belirlenmesi. Gazi Üniversitesi Turizm Fakültesi Dergisi, (1), 70-99.
  • Işık, C., Küçükaltan, E. G., Çelebi, S. K., Çalkin, Ö., Enser, İ., & Çelik, A. (2019a). Tourism and entrepreneurship: A literature review. Journal of Ekonomi, 1(1), 1-27.
  • Işık, C., Küçükaltan, E. G., Çelebi, S. K., Çalkin, Ö., Enser, İ., & Çelik, A. (2019b). Turizm ve girişimcilik alanında yapılmış çalışmaların bibliyometrik analizi. Güncel Turizm Araştırmaları Dergisi, 3(1), 119-149.
  • Karaçor, Z. (2014). Rasyonel Beklentiler Kuraminda Enflasyon. Selçuk Üniversitesi Sosyal Bilimler Meslek Yüksekokulu Dergisi, 1 (3), 143-150. https://dergipark.org.tr/tr/pub/selcuksbmyd/ issue/11289/134928
  • Künü, S. & Duran, S. (2021). Understanding COVID-19 virus pandemic in terms of behavioral economics in terms of how people think and learn. Journal of Ekonomi, 3(2), 111-118.
  • Serttaş, A., Sarikaya, T. & Ünğan, E. (2022). Sustainability as a communication policy created by the economic system. Journal of Ekonomi, 4(2), 74-81.
  • Masca, M. (2007) “Keynes Sonrası”, 1-166, http://www2.aku.edu.tr/mmasca/idt_XIII_hafta_ keynessonrasi.PPT 09.08.2007.
  • Müslümov, A., Hasanov, M. & Özyıldırım, C. (2002). Döviz Kuru Sistemleri ve Türkiye’de Uygulanan Döviz Kuru Sistemlerinin Ekonomiye Etkileri, TÜGİAD Ekonomi Ödülleri, 1-29.
  • Ökte, K. (2011). Makro İktisatta Son Gelişmeler: Çok Hızlı Bir Hatırlatma Dersi . İstanbul Üniversitesi Siyasal Bilgiler Fakültesi Dergisi , 0 (23-24) , 225-240 . https://dergipark.org.tr/tr/pub/iusiyasal/issue/ 610/6159
  • Pittman M. (2018). Happiness, Loneliness, and Social Media: Perceived Intimacy Mediates the Emotional Benefits of Platform Use, Vol. 7 NO. 2 The Journal Of Socıal Medıa In Socıety, https://thejsms.org/index.php/JSMS/article/view/384.
  • Saydam, A., (2005). İletişimin Akıl ve Gönül Penceresi Algılama Yönetimi, Rota Yayınları, İstanbul.
  • Steger M. & James P. (2020) Disjunctive Globalization in the Era of the Great Unsettling , Theory, Culture & Society https://doi.org/ 10.1177/0263276420957744.
  • Taylor, J. B. (1981). Estimation and Control of a Macroeconomic Model with Rational Expectations. Rational Expectations and Econometric Practice, Volume 2 (Lucas, Robert E. and Thomas J. Sargent, editors). Minneapolis, MN: University of Minnesota Press.
  • Toffler, A. & Toffler, H. (1995). War and Anti-War: Making Sense of Today's Global Chaos, Grand Central Publishing
  • Utma, S. (2018). Dijital Çağda Medyanın Psikolojik Gücü: Algı Yönetimi Perspektifinden Kuramsal Bir Değerlendirme. Atatürk Üniversitesi Sosyal Bilimler Enstitüsü Dergisi, 2903-2913. https://dergipark.org.tr/tr/pub/ataunisosbil/ issue/42067/510493
  • Wallin, M. (20013). The Challenges of the Internet and Social Media in Public, https://t.ly/rEWp
  • Wang, Y., Li, H., Li, Y., & Li, C. (2021). Deepfake detection using AI and blockchain. Computer Communications, 174, 1-8.
  • Wheatley T., Kang O., Parkinson C. & Looser C. E., (2012). From Mind Perception to Mental Connection: Synchrony as a Mechanism for Social Understanding, https://doi.org/10.1111/j.1751-9004.2012.00450.x
  • Yıldırım, K. D. (2001). Makroekonomi, Eğitim, Sağlık ve Bilimsel Araştırma Çalışmaları Vakfı,Yayın No:145, Eskişehir.

An assessment on rational expectations and perception engineering in the cyber-capitalist age

Year 2023, Volume: 5 Issue: 1, 10 - 20, 30.06.2023
https://doi.org/10.58251/ekonomi.1252661

Abstract

In recent years, studies in economics have revealed that analyses in psychology, sociology, religion, and ethics have begun to describe trends in the markets, household preferences, entrepreneurships, and investor decisions. These studies are referred to be results of the critical dynamics put forward by the "Rational Expectations Theory." Although conditional rationality is widely assumed in economic analysis, the assumptions of rational expectations as a unique approach allow for new perspectives of bias on the perception engineering which is being realised through social media for both political or economic operations. Percepion engineering has become easy and widespread in this new age of cyber-capitalism in which artificilal intelligence (AI) based Management Information Systems (MIS) and IoT tend to dominate pervasively for economic, political or religious reasons. This study asserts that investment decisions, political tendencies and economic preferences may not be rational due to exposure to perception engineering through innovative technology of algorithms and social media. Therefore, in today's cyber-capitalist ecosystems, the generation of manipulated social consent has been incredibly enhanced by hacking, collecting, accumulating, changing, controlling, and disseminating information for propaganda and marketing purposes over social media. In this multidiscipinary study, perception engineering that has become a part of artificial intelligence-assisted social engineering processes, is concluded to be the key spoiler of rational expectations of economic agents. In this context, possible measures are developed and suggested.

References

  • Aksakallı G., (2020) Sosyal Medya Algimizi Nasil Yönetiyor?, https://www.guvenliweb.org.tr/blog-detay/sosyal-medya-algimizi-nasil-yonetiyor?. Access on 15 January 2023.
  • Arğın, E. (2021). Algi, Sosyal Algi ve Algi Yönetiminin Sosyal Medyada Kullanimi, Iksad publications, Isparta Turkiye.
  • Bakan, İ. & Kefe, İ. (2012). Kurumsal Açıdan Algı ve Algı Yönetimi . Kahramanmaraş Sütçü İmam Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi, 2 (1), 19-34. Retrieved from http://iibfdergisi.ksu.edu.tr/tr/pub/issue/10264/125884.
  • Baltaci, Ö. (2029). The Predictive Relationships between the Social Media Addiction and Social Anxiety, Loneliness, and Happiness, International Journal of Progressive Education, v15 n4 p73-82 2019, https://eric.ed.gov/?id=EJ1224299
  • Baron, A. R. (2000). Psychological Perspectives on Entrepreneurship: Cognitive and Social Factors in Entrepreneurs' Success Current directions in psychological science, 9(1), 15-18, https://doi.org/10.1111/1467-8721.00050.
  • Bayrakcı, O. (2021). Perception Management in the Relationship of Power and Hegemony. Van Yüzüncü Yıl University the Journal of Social Sciences Institute, 52, 93-108.
  • Blanchard, O. J. & Watson M. W. (1982). Bubbles, Rational Expectations and Financial Markets. Crises in the Economic and Financial Structure, Paul Wachtel, editor, pp. 295-316. Lexington, MA: D.C. Heathand Company, Bull, C., & Frydman, R. (1983). The Derivation and Interpretation of the Lucas Supply Function. Journal of Money, Credit and Banking, 15(1), 82–95. https://doi.org/10.2307/1992142
  • Cukierman A., Lustenberger T. & Meltzer A. (2020). The Permanent-Transitory Confusion: Implications for Tests of Market Efficiency and for Expected Inflation During Turbulent and Tranquil Times. In: Arnon A., Young W., van der Beek K. (eds) Expectations. Springer Studies in the History of Economic Thought. Springer, Cham. https://doi.org/10.1007/978-3-030-41357-6_12
  • Elsbach, K.D., (2003). Organizational Perception Management, Research in Organization Behavior, 25, 297-332. Erbay, Muhammet & M. Mert Aslan (2019) “Algı Yönetiminde Sosyal Değerlerin Etkisi”. Ulakbilge, 38 (Temmuz): s. 497-504. doi: 10.7816/ulakbilge-07-38-04.
  • Gao, H., Xu, Y., Xu, S., & Mao, K. (2021). Social Media Analytics with Artificial Intelligence: A Review. IEEE Transactions on Computational Social Systems, 8(3), 607-620.
  • Gencoglu, O., & Hancer, C. (2020). Artificial intelligence in finance: A review. International Journal of Financial Engineering, 7(4), 2050020.
  • Gürsoy, B. G. (2020). Algi Yönetimi Türü olarak Algida Zihinsel Çöküntü ve Toplumsal Ayrişmada Beklentiyönetimi, Master Thesis, Police Academy, Gazi.
  • Işık, C. (2013). The importance of creating a competitive advantage and investing in information technology for modern economies: An ARDL test approach from Turkey. Journal of the Knowledge Economy, 4, 387-405.
  • Işık, C. & Türkmendağ, T. (2016). Atatürk Üniversitesi turizm fakültesi öğrencilerinin bireysel yenilikçilik algılarının belirlenmesi. Gazi Üniversitesi Turizm Fakültesi Dergisi, (1), 70-99.
  • Işık, C., Küçükaltan, E. G., Çelebi, S. K., Çalkin, Ö., Enser, İ., & Çelik, A. (2019a). Tourism and entrepreneurship: A literature review. Journal of Ekonomi, 1(1), 1-27.
  • Işık, C., Küçükaltan, E. G., Çelebi, S. K., Çalkin, Ö., Enser, İ., & Çelik, A. (2019b). Turizm ve girişimcilik alanında yapılmış çalışmaların bibliyometrik analizi. Güncel Turizm Araştırmaları Dergisi, 3(1), 119-149.
  • Karaçor, Z. (2014). Rasyonel Beklentiler Kuraminda Enflasyon. Selçuk Üniversitesi Sosyal Bilimler Meslek Yüksekokulu Dergisi, 1 (3), 143-150. https://dergipark.org.tr/tr/pub/selcuksbmyd/ issue/11289/134928
  • Künü, S. & Duran, S. (2021). Understanding COVID-19 virus pandemic in terms of behavioral economics in terms of how people think and learn. Journal of Ekonomi, 3(2), 111-118.
  • Serttaş, A., Sarikaya, T. & Ünğan, E. (2022). Sustainability as a communication policy created by the economic system. Journal of Ekonomi, 4(2), 74-81.
  • Masca, M. (2007) “Keynes Sonrası”, 1-166, http://www2.aku.edu.tr/mmasca/idt_XIII_hafta_ keynessonrasi.PPT 09.08.2007.
  • Müslümov, A., Hasanov, M. & Özyıldırım, C. (2002). Döviz Kuru Sistemleri ve Türkiye’de Uygulanan Döviz Kuru Sistemlerinin Ekonomiye Etkileri, TÜGİAD Ekonomi Ödülleri, 1-29.
  • Ökte, K. (2011). Makro İktisatta Son Gelişmeler: Çok Hızlı Bir Hatırlatma Dersi . İstanbul Üniversitesi Siyasal Bilgiler Fakültesi Dergisi , 0 (23-24) , 225-240 . https://dergipark.org.tr/tr/pub/iusiyasal/issue/ 610/6159
  • Pittman M. (2018). Happiness, Loneliness, and Social Media: Perceived Intimacy Mediates the Emotional Benefits of Platform Use, Vol. 7 NO. 2 The Journal Of Socıal Medıa In Socıety, https://thejsms.org/index.php/JSMS/article/view/384.
  • Saydam, A., (2005). İletişimin Akıl ve Gönül Penceresi Algılama Yönetimi, Rota Yayınları, İstanbul.
  • Steger M. & James P. (2020) Disjunctive Globalization in the Era of the Great Unsettling , Theory, Culture & Society https://doi.org/ 10.1177/0263276420957744.
  • Taylor, J. B. (1981). Estimation and Control of a Macroeconomic Model with Rational Expectations. Rational Expectations and Econometric Practice, Volume 2 (Lucas, Robert E. and Thomas J. Sargent, editors). Minneapolis, MN: University of Minnesota Press.
  • Toffler, A. & Toffler, H. (1995). War and Anti-War: Making Sense of Today's Global Chaos, Grand Central Publishing
  • Utma, S. (2018). Dijital Çağda Medyanın Psikolojik Gücü: Algı Yönetimi Perspektifinden Kuramsal Bir Değerlendirme. Atatürk Üniversitesi Sosyal Bilimler Enstitüsü Dergisi, 2903-2913. https://dergipark.org.tr/tr/pub/ataunisosbil/ issue/42067/510493
  • Wallin, M. (20013). The Challenges of the Internet and Social Media in Public, https://t.ly/rEWp
  • Wang, Y., Li, H., Li, Y., & Li, C. (2021). Deepfake detection using AI and blockchain. Computer Communications, 174, 1-8.
  • Wheatley T., Kang O., Parkinson C. & Looser C. E., (2012). From Mind Perception to Mental Connection: Synchrony as a Mechanism for Social Understanding, https://doi.org/10.1111/j.1751-9004.2012.00450.x
  • Yıldırım, K. D. (2001). Makroekonomi, Eğitim, Sağlık ve Bilimsel Araştırma Çalışmaları Vakfı,Yayın No:145, Eskişehir.
There are 32 citations in total.

Details

Primary Language English
Subjects Economics
Journal Section Research Articles
Authors

Ahmet Efe 0000-0002-2691-7517

Early Pub Date May 13, 2023
Publication Date June 30, 2023
Submission Date February 17, 2023
Published in Issue Year 2023 Volume: 5 Issue: 1

Cite

APA Efe, A. (2023). An assessment on rational expectations and perception engineering in the cyber-capitalist age. Journal of Ekonomi, 5(1), 10-20. https://doi.org/10.58251/ekonomi.1252661

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