Table Of Contents:

List of Contributors xv
Preface xvii

Introduction: A Brief History of Neuroeconomics 1(12)

Paul W. Glimcher

Colin F. Camerer

Ernst Fehr

Russell A. Poldrack

Neoclassical economics 1(4)

Cognitive neuroscience 5(1)

Setting the stage for neuroeconomics 6(1)

Two trends, one goal 7(4)

Summary 11(1)

References 11(2)

Part I: Neoclassical Economic Approaches to the Brain 13(100)

Introduction: Experimental Economics and Neuroeconomics 15(6)

Vernon L. Smith

Introduction 15(1)

The internal order: rewards and the brain 16(1)

The social order 17(1)

The market order 18(1)

References 18(3)

Axiomatic Neuroeconomics 21(12)

Andrew Caplin

Mark Dean

Introduction 21(1)

The axiomatic method in decision theory 22(2)

Axioms and neuroeconomics: the case of dopamine and reward prediction error 24(6)

Conclusions 30(1)

References 31(2)

Neuroeconomics: Formal Models of Decision Making and Cognitive Neuroscience 33(14)

Aldo Rustichini

Introduction 33(1)

Axiomatic decision theory 34(2)

Static stochastic choice 36(2)

Dynamic stochastic choice 38(1)

Decision in perceptual tasks 39(1)

The computation of utility 40(1)

Factors affecting the decision process 40(2)

Cognitive abilities and preferences 42(1)

Appendix: Random walk with endogenous barriers 43(1)

Optimal policy 44(1)

Value and quality of signals 44(1)

References 45(2)

Experimental Neuroeconomics and Non-cooperative Games 47(16)

Daniel Houser

Kevin McCabe

Introduction 47(7)

Game theory experiments 54(3)

Neuroeconomics experiments 57(3)

Towards a neuroeconomic theory of behavior in games 60(1)

Conclusion 61(1)

References 61(2)

Games in Humans and Non-human Primates: Scanners to Single Units 63(18)

Alan Sanfey

Michael Dorris

Introduction 63(1)

Game theory 64(2)

Games in non-human primates 66(6)

Games in humans 72(5)

Conclusion 77(1)

References 78(3)

The Evolution of Rational and Irrational Economic Behavior: Evidence and Insight from a Non-human Primate Species 81(14)

Laurie R. Santos

M. Keith Chen

Introduction 81(1)

Neoclassical approaches to non-standard behavior 82(2)

The role of non-human primate studies in modern economics 84(1)

Primate evolution 101 85(2)

Revealing capuchin preferences: the token trading methodology 87(1)

Do capuchins obey price theory as humans do? 88(1)

Do capuchins display the same biases as humans? 88(2)

What comparative work means for traditional economics and neuroeconomics 90(2)

References 92(3)

The Expected Utility of Movement 95(18)

Julia Trommershauser

Laurence T. Maloney

Michael S. Landy

Introduction 95(1)

Movement planning as optimization 96(8)

Movement planning and decision making 104(4)

Neural correlates of motor and cognitive decisions 108(1)

Conclusion 109(1)

References 109(4)

Part II: Behavioral Economics and the Brain 113(208)

The Psychology and Neurobiology of Judgment and Decision Making: What's in it for Economists? 115(12)

B. Douglas Bernheim

Introduction 115(1)

A framework for discussion 116(1)

Is the relevance of neuroeconomics self-evident? 117(1)

Some specific sources of skepticism 118(1)

Are there uses for exogenous neuroeconomic variables? 119(1)

Are there uses for endogenous neuroeconomic variables? 120(1)

Do economic theories have testable implications concerning neural processes? 120(1)

Can an understanding of neural processes usefully guide model selection? 121(2)

Can neuroeconomics improve out-of-sample predictions? 123(1)

Conclusions 124(1)

References 124(3)

Decisions Under Uncertainty: Psychological, Economic, and Neuroeconomic Explanations of Risk Preference 127(18)

Elke U. Weber

Eric J. Johnson

Risk preference: the historical context 127(3)

Decisions under uncertainty 130(3)

Modeling decision making under uncertainty 133(6)

Summary and implications 139(3)

References 142(3)

Prospect Theory and the Brain 145(30)

Craig R. Fox

Russell A. Poldrack

Introduction to prospect theory 145(9)

Prospect theory measurement 154(11)

Neuroscientific data 165(4)

Conclusions and future directions 169(1)

Appendix 170(1)

References 171(4)

Values and Actions in Aversion 175(18)

Peter Dayan

Ben Seymour

Introduction 175(1)

The architecture of affective decision making 176(5)

Pavlovian influences over instrumental behavior 181(5)

Aversively motivated behavior 186(2)

Conclusions 188(1)

References 188(5)

Behavioral Game Theory and the Neural Basis of Strategic Choice 193(16)

Colin F. Camerer

Game theory 193(1)

Behavioral game theory 194(1)

Social preferences over outcomes 195(4)

Psychological and neural evidence 199(5)

Conclusions and future research 204(1)

References 205(4)

Neuroscience and the Emergence of Neuroeconomics 209(6)

Antonio Damasio

From neuroscience to neuroeconomics 209(3)

Decision making, emotion, and biological value 212(1)

References 213(2)

Social Preferences and the Brain 215(18)

Ernst Fehr

Introduction 215(2)

Measuring social preferences 217(3)

Anticipating others' social preferences 220(1)

Exploring the neural circuitry of social preferences-methodological concerns 221(1)

The neurobiology of other-regarding punishment behavior 222(6)

The neurobiology of trust and trustworthiness 228(1)

Conclusions 229(1)

References 230(3)

The Study of Emotion in Neuroeconomics 233(18)

Elizabeth A. Phelps

Introduction 233(1)

Defining components of emotion and affect 234(3)

Categories of emotion and affective experience 237(2)

Manipulating and measuring emotion in research 239(3)

Emotion and affect in economic and neuroeconomic research 242(5)

Conclusions 247(1)

References 247(4)

Understanding Others: Brain Mechanisms of Theory of Mind and Empathy 251(18)

Tania Singer

Introduction 251(3)

Defining concepts 254(1)

The study of ``theory of mind'' 255(1)

The study of empathy and feelings 256(6)

Open questions and implications for future research in neuroeconomics 262(3)

References 265(4)

Social Preferences in Primates 269(16)

Joan B. Silk

Introduction 269(1)

The adaptive challenge of altruism 270(1)

The deployment of altruism in primate groups 271(2)

Primate policing and punishment 273(1)

Cognitive basis of social preferences 274(1)

Empirical evidence for empathy and sympathy 275(1)

Social preferences in primates 276(6)

Conclusions 282(1)

References 283(2)

Responses to Inequity in Non-human Primates 285(18)

Sarah F. Brosnan

Introduction 285(1)

Inequity aversion 286(3)

Why non-human primates are relevant to inequity 289(2)

Reactions to inequity in non-human primates 291(8)

Conclusions 299(1)

References 300(3)

Neuroeconomics of Charitable Giving and Philanthropy 303(18)

Ulrich Mayr

William T. Harbaugh

Dharol Tankersley

Introduction 303(1)

Some economics of public goods and charitable giving 304(5)

Neural-level evidence 309(9)

Conclusion 318(1)

References 319(2)

Part IV: Understanding Valuation - learning Valuations 321(96)

Midbrain Dopamine Neurons: A Retina of the Reward System? 323(8)

Wolfram Schultz

Introduction 323(1)

Concepts of reward 324(1)

Dopamine reward-related responses 325(2)

Dopamine reward risk signal 327(1)

Dopamine confusions 327(1)

Conclusions 328(1)

References 328(3)

Theoretical and Empirical Studies of Learning 331(22)

Yael Niv

P. Read Montague

Introduction 331(1)

Reinforcement learning: theoretical and historical background 332(5)

Application of reinforcement learning models to neural data 337(5)

Evidence from imaging of human decision making 342(2)

Beyond prediction errors and phasic dopamine 344(2)

What's missing? Challenges and future directions 346(1)

Conclusions 347(1)

References 348(5)

The Neurobiological Foundations of Valuation in Human Decision Making Under Uncertainty 353(14)

Peter Bossaerts

Kerstin Preuschoff

Ming Hsu

Introduction 353(2)

Distinguishing valuation and choice 355(3)

Valuation under pure risk: trading off risk against reward 358(2)

Extending the reward-risk computational model to ambiguity 360(3)

Extending the reward-risk computational model to decisions involving equity and efficiency 363(1)

References 364(3)

Multiple Forms of Value Learning and the Function of Dopamine 367(22)

Bernard W. Balleine

Nathaniel D. Daw

John P. O'Doherty

Introduction 367(1)

Reward, prediction, and reinforcement 368(6)

Reinforcement learning 374(3)

Neural basis of reinforcement learning 377(7)

Conclusions 384(1)

References 385(4)

Representation of Subjective Value in the Striatum 389(18)

Brian Knutson

Mauricio R. Delgado

Paul E. M. Phillips

Introduction 389(2)

Structure 391(2)

Function 393(8)

Prediction 401(1)

Implications 402(1)

References 403(4)

The Basal Ganglia and the Encoding of Value 407(10)

Kenji Doya

Minoru Kimura

Introduction 407(1)

Action-value coding in striatal neurons 408(1)

Short-and long-term reward prediction in the striatum 409(3)

Centromedian thalamic neurons 412(1)

Motivation and outcome coding in dopamine neurons 413(1)

Conclusion 414(1)

References 415(2)

Part V: The Neural Mechanisms for Choice 417(110)

The Neural Mechanisms that Underlie Decision Making 419(6)

Charles R. Gallistel

Introduction 419(1)

Can/should neurobiological data constrain economic theorizing? 420(2)

Matching 422(2)

References 424(1)

The Computation and Comparison of Value in Goal-directed Choice 425(16)

Antonio Rangel

Introduction 425(1)

Preliminaries: what is goal-directed choice and what needs to be computed? 426(1)

Perceptual decision making 427(6)

Simple goal-directed choice 433(5)

Final remarks 438(1)

References 439(2)

Neuronal Representations of Value 441(22)

Michael Platt

Camillo Padoa-Schioppa

Introduction 442(1)

Economic choice and the orbitofrontal cortex 442(6)

Valuation signals in parietal cortex 448(4)

Evaluation of events and actions in posterior cingulate cortex 452(4)

Neuro-cognitive models of choice 456(3)

Conclusion 459(1)

References 459(4)

The Trouble with Choice: Studying Decision Variables in the Brain 463(18)

Greg S. Corrado

Leo P. Sugrue

Julian R. Brown

William T. Newsome

Introduction 463(2)

Direct methods for accessing decision variables 465(2)

Model-based approaches 467(7)

Validating behavioral performance 474(2)

The quest for neural correlates 476(2)

Conclusion 478(1)

References 479(2)

Mechanisms for Stochastic Decision Making in the Primate Frontal Cortex: Single-neuron Recording and Circuit Modeling 481(22)

Daeyeol Lee

Xiao-Jing Wang

Introduction 481(2)

Game-theoretic studies of decision making in non-human primates 483(4)

Neurophysiological studies of decision making in competitive games 487(3)

Models of decision making 490(5)

Reward-dependent plasticity and adaptive choice behavior 495(4)

Conclusion 499(1)

References 500(3)

Choice: Towards a Standard Back-pocket Model 503(20)

Paul W. Glimcher

Introduction 503(1)

The basic two-stage model 504(3)

Defining objects 507(4)

The basic structure of the valuation system 511(4)

Choice 515(3)

Alternatives to the two-stage model 518(1)

Conclusion 519(1)

References 520(3)

Remarks on Neuroeconomics 523(4)

Daniel Kahneman

References 526(1)
Index 527