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Modern Transformations of Economics: Neuroeconomics

Author

Listed:
  • Tatevik Mkrtchyan

    (Armenian State University of Economics)

Abstract

Traditionally, economists have not been interested in the neural underpinnings of human behavior. According to the classical decision-making theory, a decision-maker is a perfectly rational cognitive agent ignoring the influence of emotions. However, in recent years this model has been challenged by prospect theory, which identifies heuristics and biases that influence human choice. A recent approach known as neuroeconomics is a transdisciplinary field that tries to shed light on the computational and neurobiological mechanisms underlying the decision-making process, integrating ideas and methods from the fields of psychology, neuroscience, economics and computer science. Neuroeconomics gives researchers an opportunity to look into the “black box” of the human brain, which will give an opportunity to investigate how people make choices, how the brain calculates gains and losses, the roles of emotions and cognition, etc. The aim of this paper is to survey findings from the neuroeconomic literature and investigate the implications of this knowledge for understanding human behavior in various contexts.

Suggested Citation

  • Tatevik Mkrtchyan, 2016. "Modern Transformations of Economics: Neuroeconomics," Theory Methodology Practice (TMP), Faculty of Economics, University of Miskolc, vol. 12(02), pages 15-24.
  • Handle: RePEc:mic:tmpjrn:v:12:y:2016:i:02:p:15-24
    as

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    File URL: http://tmp.gtk.uni-miskolc.hu/volumes/2016/02/TMP_2016_02_02.pdf
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    References listed on IDEAS

    as
    1. Daniel Kahneman & Amos Tversky, 2013. "Prospect Theory: An Analysis of Decision Under Risk," World Scientific Book Chapters, in: Leonard C MacLean & William T Ziemba (ed.), HANDBOOK OF THE FUNDAMENTALS OF FINANCIAL DECISION MAKING Part I, chapter 6, pages 99-127, World Scientific Publishing Co. Pte. Ltd..
    2. repec:cup:judgdm:v:3:y:2008:i::p:396-403 is not listed on IDEAS
    3. Shane Frederick & George Loewenstein & Ted O'Donoghue, 2002. "Time Discounting and Time Preference: A Critical Review," Journal of Economic Literature, American Economic Association, vol. 40(2), pages 351-401, June.
    4. Ernst Fehr & Antonio Rangel, 2011. "Neuroeconomic Foundations of Economic Choice--Recent Advances," Journal of Economic Perspectives, American Economic Association, vol. 25(4), pages 3-30, Fall.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    neuroeconomics; neuroscience; brain; behavior; fMRI;
    All these keywords.

    JEL classification:

    • B59 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Other
    • D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles
    • D87 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Neuroeconomics

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