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Cultural neuroeconomics of intertemporal choice

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Author Info
Takahashi, Taiki
Hadzibeganovic, Tarik
Cannas, Sergio
Makino, Takaki
Fukui, Hiroki
Kitayama, Shinobu
Abstract

According to theories of cultural neuroscience, Westerners and Easterners may have distinct styles of cognition (e.g., different allocation of attention). Previous research has shown that Westerners and Easterners tend to utilize analytical and holistic cognitive styles, respectively. On the other hand, little is known regarding the cultural differences in neuroeconomic behavior. For instance, economic decisions may be affected by cultural differences in neurocomputational processing underlying attention; however, this area of neuroeconomics has been largely understudied. In the present paper, we attempt to bridge this gap by considering the links between the theory of cultural neuroscience and neuroeconomic theory of the role of attention in intertemporal choice. We predict that (i) Westerners are more impulsive and inconsistent in intertemporal choice in comparison to Easterners, and (ii) Westerners more steeply discount delayed monetary losses than Easterners. We examine these predictions by utilizing a novel temporal discounting model based on Tsallis' statistics (i.e. a q-exponential model). Our preliminary analysis of temporal discounting of gains and losses by Americans and Japanese confirmed the predictions from the cultural neuroeconomic theory. Future study directions, employing computational modeling via neural networks, are briefly outlined and discussed.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 16814.

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Date of creation: 2009
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Handle: RePEc:pra:mprapa:16814

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Related research
Keywords: Cultural neuroscience; neuroeconomics; intertemporal choice; attention allocation; Tsallis’ statistics; neural networks;

Find related papers by JEL classification:
C63 - Mathematical and Quantitative Methods - - Mathematical Methods and Programming - - - Computational Techniques
C02 - Mathematical and Quantitative Methods - - General - - - Mathematical Economics
Z19 - Other Special Topics - - Cultural Economics - - - Other
C49 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Other
C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior

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  1. 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.
  2. Dilip Soman & George Ainslie & Shane Frederick & Xiuping Li & John Lynch & Page Moreau & Andrew Mitchell & Daniel Read & Alan Sawyer & Yaacov Trope & Klaus Wertenbroch & Gal Zauberman, 2005. "The Psychology of Intertemporal Discounting: Why are Distant Events Valued Differently from Proximal Ones?," Marketing Letters, Springer, vol. 16(3), pages 347-360, December. [Downloadable!] (restricted)
  3. Read, Daniel & Roelofsma, Peter H. M. P., 2003. "Subadditive versus hyperbolic discounting: A comparison of choice and matching," Organizational Behavior and Human Decision Processes, Elsevier, vol. 91(2), pages 140-153, July. [Downloadable!] (restricted)
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This page was last updated on 2009-11-30.


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