Neuroeconomics

Preface

Using the Book

Acknowledgments

List of Contributors

Introduction: A Brief History of Neuroeconomics

Neoclassical Economics

Cognitive Neuroscience

Setting the Stage for Neuroeconomics

Two Trends, One Goal

Consolidation

Summary

References

Part I: The Fundamental Tools of Neuroeconomics

Chapter 1. Basic Methods from Neoclassical Economics

Introduction

Rational Choice and Utility Theory: Some Beginnings

The ordinal revolution and the Logic of Choice

Quantitative Tests of Qualitative Theories: Revealed Preference

Expected Utility Theory

Using Axioms: The Neoclassical Approach in Neuroeconomics

References

Chapter 2. Experimental Economics and Experimental Game Theory

Introduction

Game Theory Described

Game Theory Experiments

Neuroeconomics experiments

Towards a Neuroeconomic Theory of Game Playing

References

Chapter 3. Computational and Process Models of Decision Making in Psychology and Behavioral Economics

Introduction

Models of Risky Choice

Models of Riskless Choice

Models of Choice Over Time

Computational Process Models

Diffusion Models of Rapid Decisions

Judgment

Conclusion

References

Chapter 4. Estimation and Testing of Computational Psychological Models

Introduction

Behavioral Data to be Modeled

Methods for Estimating Parameters

Model Comparisons

Conclusions

Acknowledgments

References

Chapter 5. Introduction to Neuroscience

Introduction

The Cellular Structure of Information Encoding in the Brain

The Large-Scale Anatomical Structure of the Brain

Organizing Principles of Representation in the Brain

Plasticity and Memory

Summary and Conclusions

References

Chapter 6. Experimental Methods in Cognitive Neuroscience

Introduction

Measurement Techniques

Manipulation Techniques

Conclusion: Convergence Across Methods

References

Chapter 7. Evolutionary Anthropological Insights into Neuroeconomics: What Non-Human Primates can Tell us About Human Decision-Making Strategies

Introduction: How an Evolutionary Perspective is Important for Neuroeconomics

Understanding Evolutionary Homologies Across Primates

Prospect Theory and Framing Effects in Non-Human Primates

Ambiguity Aversion and the Ellsberg Paradox in Non-Human Primates

What Comparative Work Means for Traditional Economics and Neuroeconomics

Acknowledgments

References

Part II: Neural and Psychological Foundations of Economic Preferences

Chapter 8. The Computation of Stimulus Values in Simple Choice

Introduction

Theory: A Computational Model of Simple Choice

Methodology: How to Identify Stimulus Value Signals?

Evidence: Stimulus Value Signals in Basic Valuation Tasks

Complication: Attention Modulates the Computation and Comparison of Stimulus Values

Theory: How are Stimulus Values Computed?

Evidence for a Causal Role of the Stimulus Value Signals in VMPFC

Conclusions

Acknowledgments

References

Chapter 9. Valuation for Risky and Uncertain Choices

Introduction

Decisions Under Uncertainty and Risk

Models of Risky Choice

Neural Representation of Uncertainty and Risk

Conclusions

Acknowledgments

References

Chapter 10. Valuation, Intertemporal Choice, and Self-Control

Introduction

Valuation in Intertemporal Choice

Self-Control

Conclusion

References

Chapter 11. Social Preferences and the Brain

Behaviors and Motives

Exploring the Neural Circuitry of Social Preferences: Methodological Concerns

The Neurobiology of Simple Choice

Evidence for the Similarity Between Social Preference Decisions and Simple Reward-Based Decisions

Components of the Social Preferences Network

Conclusions

References

Chapter 12. Neuroeconomics of Emotion and Decision Making

Introduction: Heart or Head?

Studying Emotion

Incidental Affect: Carry-Over Effects on Decision Making

Emotion’s Impact on Valuation During Choice

Changing Emotions, Changing Choices

General Conclusion: Beyond Two Systems

References

Chapter 13. Multistage Valuation Signals and Common Neural Currencies

Introduction to Value-Based Decision Making

Stage 1: Valuation of Options – Predicted Valuation Signals

Stage 2: Choice–Action Valuation Signals

Stage 3: Outcome – Experienced Valuation Signals

Conclusion: Multistage Neuro-Cognitive Models of Choice

References

Chapter 14. Pharmacology of Economic and Social Decision Making

Introduction to Psychopharmacology

Pharmacology of Time Preferences

Pharmacology of Risk Preferences

Pharmacology of Social Preferences

Conclusion

References

Part III: Learning and Valuation

Chapter 15. Value Learning through Reinforcement: The Basics of Dopamine and Reinforcement Learning

Introduction

Learning: Prediction and Prediction Errors

Functional Anatomy of Dopamine and Striatum

Responses of Dopamine Neurons to Outcomes

Sequential Predictions: From Rescorla–Wagner to Temporal Difference Learning

Temporal Difference Learning and the Dopamine Response

From Error-Driven Learning to Choice

Conclusions

References

Chapter 16. Advanced Reinforcement Learning

Introduction

The RL Formalism

Learning

Rewards and Punishments

States, Stimuli, and Perceptual Uncertainty

Actions

Conclusion

References

Chapter 17. The Basal Ganglia, Reinforcement Learning, and the Encoding of Value

Introduction

Value-Based and Procedure-Based Strategies

Encoding of Values and Strategies by Striatal Neurons

The Role of the Putamen in History-Based Action Selection

Encoding of Long-Term Values and Multistep Reward Prediction Errors by Midbrain Dopamine Neurons

Decision to Wait and the Activity of Dorsal Raphe Serotonin Neurons

Conclusion

References

Chapter 18. From Experienced Utility to Decision Utility

Introduction

Experienced Utility

Experienced Utility: Neuroimaging Brain Activations in Humans

Beyond Experienced Utility

Identifying What Does What for Brain Mechanisms of Outcome Utilities

Berridge’s Critique of the Dopamine Reward-Learning Hypothesis

O’Doherty’s Response to the Critique of the Reward-Learning Hypothesis

Integration Between the Two Viewpoints?

Conclusion

Acknowledgment

References

Part IV: The Neural Mechanisms for Choice

Chapter 19. Neural Mechanisms for Perceptual Decision Making

Introduction

Signal Detection Theory and Sensory Representation

Sequential Sampling Models and the Decision Process

Perceptual Decision Making in Humans

Summary and Conclusions

References

Chapter 20. Value-Based Decision Making

Introduction

The Twin Threads of Decision Neuroscience

An Overview of the Standard Model for Value-Based Decision Making

Understanding the Choice Circuit

Understanding the Valuation Circuit

Relating the Standard Model To Economic Theory: Rums

Putting it All Together: Relating the Standard Model to Perceptual Decision

References

Chapter 21. Multiple Systems for Value Learning

Introduction

Multiple Systems for Learning and Controlling Behavior

Computational Foundations of Multiple Learning Systems

Multiple Neural Systems for Value Learning

What is the Nature of the Interactions Between the Different Systems?

Conclusions: Alternative Systems, More Systems

References

Chapter 22. Integrating Benefits and Costs in Decision Making

Introduction to Behavioral Ecological Approaches to Decision Making

Anatomy of Cost-Based Decision Making

Linking Stimuli and Actions to Rewards and Making Decisions

Anterior Cingulate Cortex and Effort-Based Decision Making

Contrasting Roles of Different Frontal Cortex Areas in Different Types of Cost-Based Decision Making

A Distributed Network for Making Cost–Benefit Decisions

Choice Representations in Anterior Cingulate Cortex are Invariantly Tied to a Reference Frame Suitable for Foraging

Neuropharmacology of Cost-Based Choice

Conclusions

References

Chapter 23. Neuronal Circuit Computation of Choice

Introduction

Models of Decision Making

Adaptive Value-Based Choice

Conclusion

Acknowledgments

References

Chapter 24. The Neurobiology of Context-Dependent Valuation and Choice

Introduction

Behavioral Context Effects in Choice

The Neurobiology of Context-Dependence in Decision-Related Systems

Electrophysiological Studies Of Context-Dependence

Neuroimaging Studies of Context-Dependence in Decision Making

Bridging Context-Dependent Coding and Decision-Making Behavior

Conclusions

References

Part V: Brain Circuitry of Social Valuation and Social Choice

Chapter 25. The Neural Basis of Strategic Choice

Components of Behavioral Game Theory

Neural Evidence

Conclusions and Future Research

References

Chapter 26. Brain Circuitry for Social Decision Making in Non-Human Primates

Introduction

Game Theory

Primate Visuo-Saccadic Circuitry as a Model System for Studying the Neural Basis of Social Decision Making

Reinforcement Learning

Cortical Mechanisms of Reinforcement Learning During Iterative Games

Response Selection by the Frontal Eye Fields and Superior Colliculus

Conclusions

Acknowledgments

References

Chapter 27. Understanding Others: Brain Mechanisms of Theory of Mind and Empathy

Introduction

Defining Concepts

The Study of Theory of Mind

The Study of Empathy and Feelings

Social Emotions: Emotional Contagion, Compassion, Envy, and Schadenfreude

Future Research Directions

References

Appendix. Prospect Theory and the Brain

Introduction to Prospect Theory

Prospect Theory Measurement

Neuroscientific Data

Conclusions and Future Directions

References

Index