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Goals, Methods, and Progress in Neuroeconomics

Camerer, Colin F. (2013) Goals, Methods, and Progress in Neuroeconomics. Annual Review of Economics, 5 . pp. 425-455. ISSN 1941-1383. doi:10.1146/annurev-economics-082012-123040.

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Neuroeconomics shares the main goals of microeconomics: to understand what causes choices, and the welfare properties of choice. The novel goal is linking mathematical constructs and observable behavior to mechanistic details of neural circuitry. Several complementary methods are used. An initial insight from neuroscience is that distinct systems guide choice: Pavlovian and instrumental conditioning (learning) of state-value and response-value associations, overlearned habits, and model- (or goal-) directed value that requires deliberation. These systems can differ economically from rational choice—for example, habitual choices have low utility and price elasticities, whereas model-directed values are often constructed preferences. Neuroeconomics also provides evidence of situations in which utility maximization either works well (in simple binary choice) or benefits from the introduction of behavioral constructs. Neuroeconomics is well equipped to guide the theory of how choices depend on mental states, such as fear or cognitive load. Examples include extensive studies of risk and time preference, finance, and neural decoding of private information.

Item Type:Article
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Camerer, Colin F.0000-0003-4049-1871
Additional Information:© 2013 Annual Reviews. First published online as a Review in Advance on May 3, 2013. I thank the Moore Foundation and Tamagawa GCOE for support and Taisuke Imai, Min Kang, and Reviewing Editor David Laibson for comments.
Funding AgencyGrant Number
Gordon and Betty Moore FoundationUNSPECIFIED
Tamagawa Global Center of ExcellenceUNSPECIFIED
Subject Keywords:fMRI, behavioral economics, neural circuitry, emotion, reward
Record Number:CaltechAUTHORS:20131011-101906504
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Official Citation:Goals, Methods, and Progress in Neuroeconomics Colin F. Camerer Annual Review of Economics 2013 5:1, 425-455
Usage Policy:No commercial reproduction, distribution, display or performance rights in this work are provided.
ID Code:41889
Deposited By: Tony Diaz
Deposited On:11 Oct 2013 17:24
Last Modified:10 Nov 2021 04:35

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