1Cognitive Flexibility Hypertext as a Learning Environment inEconomics: A Pedagogical NoteDuane B. Graddy, John T. Lee, and J. Douglas TimmonsMiddle Tennessee State UniversityAbstractInstructional design in complex subjects requires the application of a sophisticatedtheory of cognition.* Instructional techniques and strategies that work at theknowledge and comprehension stages of cognitive development may actually inhibitlearning at more advanced levels. Evaluation and synthesis require a differentcognitive paradigm. The theory of cognitive flexibility is a case-based approach forthe development of upper-level cognitive skills, particularly the ability to transferknowledge to novel situations. This paper applies the theory of cognitive flexibilityto instructional design in economics. An example from monetary economicsillustrates the adaptation of cognitive flexibility hypertext to a knowledgemanagement interface. ** * ”Simplification of complex subject matter makes it easier for teachers to teach, for students to take notes and prepare for tests,for test-givers to construct and grade tests, and for authors to write texts. The result is a massive “conspiracy of convenience”.Spiro, et al, 1987, p.180.** The URL for the interface is http://brainserver.thebrain.com/get.asp?i=a3f952Cognitive Flexibility Hypertext as a Learning Environment inEconomics: A Pedagogical NoteDuane B. Graddy, John T. Lee, and J. Douglas TimmonsMiddle Tennessee State UniversityI. IntroductionBridging the knowledge gap between experts in economics analysisand novices through the economics curriculum requires innovativeapproaches to the construction of learning environments. The ultimateaim, of course, is to train learners to think like experts in the field ofeconomics. Bransford,et al (John D. Bransford, Ann L. Brown, andRodney R. Cocking, 2000) list the following characteristics of experts’knowledge.§ Experts notice relationships and patterns of information that arenot evident to novices.§ Experts have acquired a base of content knowledge that reflectsdeep understanding of the subject matter.§ Experts have knowledge that is conditionalized by specificcircumstances§ Experts are able to retrieve relevant aspects of knowledge withlittle attentional effort.§ Experts know their discipline thoroughly.§ Experts have varying levels of flexibility in approaching newsituations or scenarios.But how do we approach the daunting questions of creating learningenvironments that impart economic knowledge, fosters deeperunderstanding of the discipline, and enhances the learners’ ability totransfer economic principles to novel situations?The theory of cognitive flexibility (R. Spiro, P. Feltovich, M. Jacobson,and R. Coulson, 1995, R. Spiro, W. Vispoel, and J. Schmitz, 1987)provides a conceptual framework for developing a case-basedapproach to addressing these issues. Instructional strategies flowingfrom the theory of cognitive flexibility reflect two areas of educationalresearch:1. Studies devoted to understanding the cognitive processes ofexperts and novices and2. Analyses of the learning experiences that enhance knowledgetransfer.3Investigations of the differences between the problem-solvingcapabilities of experts and novices conclude that the disparity betweenthe two groups is not due to just memory and intelligence. Theextensive experience of experts affects what they notice and how theyorganize, represent, and interpret information in their area ofexpertise. The knowledge of experts appears conditionalized by thecontextual circumstances of an issue. On the other hand, studies findthat novices focus on memorizing, recalling, and rote manipulation offormulas and symbols (John D. Bransford, Ann L. Brown, and RodneyR. Cocking, 2000).Knowledge transfer is the ability to apply economic principles to novelcircumstances and scenarios. Research in the general area ofknowledge transfer by Spiro, et al finds that learners are able tocomprehend the relevant features of important concepts and ideasbetter when they are taught in multiple contexts. Exposure to manycontextual situations increases the learner’s capacity to think flexiblyabout complex problems and issues.1II. Cognitive Flexibility and Case-Based LearningAccording to Spiro, et al (R. Spiro, P. Feltovich, M. Jacobson, and R.Coulson, 1995), cognitive flexibility is the “ability to spontaneouslyrestructure one’s knowledge in many ways, in adaptive response toradically changing situational demands.” That is, in complexenvironments, learners generally cannot retrieve an intact learningstructure from memory; instead the mind combines, recombines, andreinvents structural components to meet the requirements of eachparticular situation. Thus, knowledge becomes context dependent.Cognitive flexibility theory focuses on learning processes in ill-structured, context-dependent learning environments.Ill-structured environments are characterized by two properties.1. Knowledge applications involve interactive, multiple conceptstructures each of which is individually complex.2. Across-case irregularities are prevalent; cases or outcomes thatappear similar have different conceptual incidence and casualnexuses. 1 Viewed in the context of Bloom’s cognitive pyramid, the issue is how to mosteffectively achieve level six, evaluation. The verbs or actions associated with thislevel are use, appraise, judge, recommend, critique, justify, defend and transfer.4For example, fundamental economic principles that are orderly andregular in the abstract and within the confines of textbook applicationsmay be difficult to apply across varying actual economic scenarios. Thepresent value model used to explain the valuation of financial goods,for instance, is well structured but many of its applications drawn fromreality are ill-structured and complex. Securities that appear similar tonovices when applying the present value formula may be quitedifferent in underlying fundamentals. To the expert economic analystthese securities would look quite different.Subject matter ill-structuredness presents serious impediments tomastering conceptual complexity and the ability to transfer knowledgeto new situations that are different from the ones posed in lower leveleconomics courses. Spiro, et al contend that these impediments canbe overcome by moving from a learning process that emphasizes theretrieval from memory of intact preceding knowledge to a system thatstresses the flexible