The Emergent Brain

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Posts Tagged ‘Behavioral Economics

Neuroeconomics looks at your brain’s economic stimulus

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As economics is shifting to include more behavioral data and research, a field is slowly emerging that has not received much attention yet: Neuroeconomics.

Via VoxEU:

“The objective of neuroeconomic theory is to build models based on evidence from the brain sciences, such as experimental neuroeconomics, but also other fields in neuroscience and neurobiology. Measurement of brain activity provides information about the underlying mechanisms used by the brain during choice processes. In particular, it shows which brain regions are activated when a decision is made and how these regions interact with each other. This knowledge can then be used to build a model that represents this particular mechanism. Contrary to behavioural economics, the model does not rely on introspection or plausible assumptions but rather on an existing and documented biological property of the brain.”

“Neuroeconomic theory will soon play a crucial role in the building of new reliable theories capable of explaining and predicting individual behaviour and strategic choices. The main message is that the individual is not one coherent body. The brain is a multi-system entity (with conflicting objectives, restricted information, etc.) and therefore the decision-maker must be modelled as an organisation.”

Click here to read: Neuroeconomic theory: Using neuroscience to understand the bounds of rationality

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Written by emergentbrain

21/09/2010 at 23:34