Advanced Search
MyIDEAS: Login to save this article or follow this journal

Information processing and decision-making: Evidence from the brain sciences and implications for economics

Contents:

Author Info

  • Brocas, Isabelle
Registered author(s):

    Abstract

    This article assesses the potential benefits of including findings from neurobiology in economic decision-making models. First, we emphasize that the evidence supports both ‘expected utility-like’ theory and ‘Bayesian-like’ information acquisition theory. Second, we explain that inferences and representations are subject to physiological limitations that affect decision making. We report in particular two ‘mechanical’ models developed in neuroscience to represent neural data and choices. We then propose two economic models that incorporate physiological limitations into an expected utility framework. Interestingly, these two models provide foundations for those developed in neuroscience (which emerge endogenously in our framework) and provide further predictions that can be tested in principle. This allows us to discuss the benefits of bringing together evidence from neuroscience and economic modeling.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://www.sciencedirect.com/science/article/pii/S0167268112001321
    Download Restriction: Full text for ScienceDirect subscribers only

    As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

    Bibliographic Info

    Article provided by Elsevier in its journal Journal of Economic Behavior & Organization.

    Volume (Year): 83 (2012)
    Issue (Month): 3 ()
    Pages: 292-310

    as in new window
    Handle: RePEc:eee:jeborg:v:83:y:2012:i:3:p:292-310

    Contact details of provider:
    Web page: http://www.elsevier.com/locate/jebo

    Related research

    Keywords: Neurobiology; Decision-making; Economic modeling;

    Find related papers by JEL classification:

    References

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
    as in new window
    1. Glimcher, Paul W. & Dorris, Michael C. & Bayer, Hannah M., 2005. "Physiological utility theory and the neuroeconomics of choice," Games and Economic Behavior, Elsevier, vol. 52(2), pages 213-256, August.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as in new window

    Cited by:
    1. Ennio Bilancini & Leonardo Boncinelli, 2014. "Persuasion with Reference Cues and Elaboration Costs," Working Papers - Economics wp2014_04.rdf, Universita' degli Studi di Firenze, Dipartimento di Scienze per l'Economia e l'Impresa.
    2. Zakaria Babutsidze, 2012. "If you love it I'll probably hate it : local interaction among consumers of information goods," Documents de Travail de l'OFCE 2012-24, Observatoire Francais des Conjonctures Economiques (OFCE).

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:eee:jeborg:v:83:y:2012:i:3:p:292-310. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.