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The Neuroeconomics of Mind Reading and Empathy

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Author Info
Tania Singer (Functional Imaging Laboratory,University College London)
Ernst Fehr () (University of Zurich and IZA Bonn)

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Abstract

The most fundamental solution concepts in Game Theory - Nash equilibrium, backward induction, and iterated elimination of dominated strategies - are based on the assumption that people are capable of predicting others' actions. These concepts require people to be able to view the game from the other players’ perspectives, i.e. to understand others’ motives and beliefs. Economists still know little about what enables people to put themselves into others’ shoes and how this ability interacts with their own preferences and beliefs. Social neuroscience provides insights into the neural mechanism underlying our capacity to represent others' intentions, beliefs, and desires, referred to as "Theory of Mind" or "mentalizing", and the capacity to share the feelings of others, referred to as "empathy". We summarize the major findings about the neural basis of mentalizing and empathizing and discuss some implications for economics.

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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 1647.

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Length: 16 pages
Date of creation: Jun 2005
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Handle: RePEc:iza:izadps:dp1647

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Related research
Keywords: neuroeconomics; mind reading; empathy;

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Find related papers by JEL classification:
A10 - General Economics and Teaching - - General Economics - - - General
C90 - Mathematical and Quantitative Methods - - Design of Experiments - - - General

This paper has been announced in the following NEP Reports:

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.:
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  17. Tania Singer & Ernst Fehr, 2005. "The Neuroeconomics of Mind Reading and Empathy," IZA Discussion Papers 1647, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
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  27. Bruno S. Frey, 2005. "Knight Fever – Towards an Economics of Awards," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
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Full references

Cited by:
(explanations, 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.)

  1. Fehr, Ernst & Singer, Tania, 2005. "The Neuroconomics of Mind Reading and Empathy," CEPR Discussion Papers 5128, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
    Other versions:
  2. Biel, Anders & Johansson-Stenman, Olof & Nilsson, Andreas, 2006. "Emotions, Morality and Public Goods: The WTA-WTP Disparity Revisited," Working Papers in Economics 193, Göteborg University, Department of Economics. [Downloadable!]
  3. Ernst Fehr & Susanne Kremhelmer & Klaus M. Schmidt, . "Fairness and the Optimal Allocation of Ownership Rights," IEW - Working Papers iewwp224, Institute for Empirical Research in Economics - IEW. [Downloadable!]
    Other versions:
  4. Donna Harris & Benedikt Herrmann & Andreas Kontoleon, 2009. "`Two's Company, Three's a Group' The impact of group identity and group size on in-group favouritism," Discussion Papers 2009-13, The Centre for Decision Research and Experimental Economics, School of Economics, University of Nottingham. [Downloadable!]
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  5. Gilles Le Garrec, 2007. "Moral sentiments, democracy and redistributive politics: between nature and culture," Documents de Travail de l'OFCE 2007-09, Observatoire Francais des Conjonctures Economiques (OFCE). [Downloadable!]
  6. Philipp C. Wichardt & Pavlo R. Blavatskyy, . "Base-Rate Neglect and Imperfect Information Acquisition," IEW - Working Papers iewwp233, Institute for Empirical Research in Economics - IEW. [Downloadable!]
  7. Falk, Armin & Fehr, Ernst & Zehnder, Christian, 2005. "The Behavioural Effects of Minimum Wages," CEPR Discussion Papers 5115, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
    Other versions:
  8. Fehr, Ernst & Fischbacher, Urs & Kosfeld, Michael, 2005. "Neuroeconomic Foundation of Trust and Social Preferences," CEPR Discussion Papers 5127, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
    Other versions:
  9. Peter Woehrmann & Willi Semmler & Martin Lettau, . "Nonparametric Estimation of the Time-varying Sharpe Ratio in Dynamic Asset Pricing Models," IEW - Working Papers iewwp225, Institute for Empirical Research in Economics - IEW. [Downloadable!]
  10. Philipp C. Wichardt, . "An Application of Global Games to Signalling Models," IEW - Working Papers iewwp223, Institute for Empirical Research in Economics - IEW. [Downloadable!]
  11. Salvador Barberà & Anke Gerber, . "A Note on the Impossibility of a Satisfactory Concept of Stability for Coalition Formation Games," IEW - Working Papers iewwp238, Institute for Empirical Research in Economics - IEW. [Downloadable!]
    Other versions:
  12. Gilles Le Garrec, 2007. "Pourquoi l'Europe redistribue-t-elle plus que les Etats-Unis? Au delà du médian égoiste," Documents de Travail de l'OFCE 2007-03, Observatoire Francais des Conjonctures Economiques (OFCE). [Downloadable!]
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  14. Hennighausen, Tanja & Heinemann, Friedrich & Bischoff, Ivo, 2008. "Individual Determinants of Social Fairness Assessments: The Case of Germany," ZEW Discussion Papers 08-063, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research. [Downloadable!]
  15. Anke Gerber, . "Learning in and about Games," IEW - Working Papers iewwp234, Institute for Empirical Research in Economics - IEW. [Downloadable!]
  16. Peter Woehrmann, . "A dynamic model of the financial–real interaction as a model selection criterion for nonparametric stock market prediction," IEW - Working Papers iewwp226, Institute for Empirical Research in Economics - IEW. [Downloadable!]
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