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Neuroeconomics: Using Neuroscience to Make Economic Predictions

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  • Colin F. Camerer

Abstract

Neuroeconomics seeks to ground economic theory in detailed neural mechanisms which are expressed mathematically and make behavioural predictions. One finding is that simple kinds of economising for life-and-death decisions (food, sex and danger) do occur in the brain as rational theories assume. Another set of findings appears to support the neural basis of constructs posited in behavioural economics, such as a preference for immediacy and nonlinear weighting of small and large probabilities. A third direction shows how understanding neural circuitry permits predictions and causal experiments which show state-dependence of revealed preference - except that states are biological and neural variables. Copyright 2007 The Author(s). Journal compilation Royal Economic Society 2007.

Suggested Citation

  • Colin F. Camerer, 2007. "Neuroeconomics: Using Neuroscience to Make Economic Predictions," Economic Journal, Royal Economic Society, vol. 117(519), pages 26-42, March.
  • Handle: RePEc:ecj:econjl:v:117:y:2007:i:519:p:c26-c42
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    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. Neuroeconomics: the nanofoundations of economics
      by Economic Logician in Economic Logic on 2008-07-17 17:03:00

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    Cited by:

    1. Marcum, Tanya M. & Blair, Eden S., 2011. "Entrepreneurial decisions and legal issues in early venture stages: Advice that shouldn’t be ignored," Business Horizons, Elsevier, vol. 54(2), pages 143-152.
    2. Baddeley, M. & Burke, C. & Schultz, W. & Tobler, P., 2012. "Herding in Financial Behaviour: A Behavioural and Neuroeconomic Analysis of Individual Differences," Cambridge Working Papers in Economics 1225, Faculty of Economics, University of Cambridge.
    3. Alexander Zimper, 2012. "The emergence of "fifty-fifty" probability judgements in a conditional Savage world," Working Papers 291, Economic Research Southern Africa.
    4. Jack Vromen, 2011. "Neuroeconomics: two camps gradually converging: what can economics gain from it?," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 58(3), pages 267-285, September.
    5. Csaba, László, 2008. "Módszertan és relevancia a közgazdaságtanban. A mai közgazdaságtan és a társtudományok
      [Methodology and relevancy in economics. Today s economics and associated sciences]
      ," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(4), pages 285-307.
    6. Piotr Majer & Peter N. C. Mohr & Hauke R. Heekeren & Wolfgang K. Härdle, 2016. "Portfolio Decisions and Brain Reactions via the CEAD method," Psychometrika, Springer;The Psychometric Society, pages 881-903.
    7. Shih-Kang Chao & Wolfgang K. Härdle & Chen Huang, 2016. "Multivariate Factorisable Sparse Asymmetric Least Squares Regression," SFB 649 Discussion Papers SFB649DP2016-058, Sonderforschungsbereich 649, Humboldt University, Berlin, Germany.
    8. Rhodes, Charles, 2012. "A Dynamic Model of Failure to Maximize Utility in the Chronic Consumer Choice to Consume Foods High in Added Sugars," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124693, Agricultural and Applied Economics Association.
    9. Sacha Bourgeois-Gironde & Itzhak Aharon, 2011. "From Neuroeconomics to Genetics: The Intertemporal Choices Case as an Example," Post-Print ijn_00713466, HAL.
    10. Committee, Nobel Prize, 2017. "Richard H. Thaler: Integrating Economics with Psychology," Nobel Prize in Economics documents 2017-1, Nobel Prize Committee.
    11. Theresa Michl & Stefan Taing, 2010. "An Economic and Neuroscientific Comparison of Strategic Decision-making," Chapters,in: Neuroeconomics and the Firm, chapter 10 Edward Elgar Publishing.
    12. Beugré, Constant D., 2009. "Exploring the neural basis of fairness: A model of neuro-organizational justice," Organizational Behavior and Human Decision Processes, Elsevier, vol. 110(2), pages 129-139, November.
    13. Giovanni Dosi, 2012. "Economic Coordination and Dynamics: Some Elements of an Alternative "Evolutionary" Paradigm," LEM Papers Series 2012/08, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    14. Victor Stango & Joanne Yoong & Jonathan Zinman, 2017. "Quicksand or Bedrock for Behavioral Economics? Assessing Foundational Empirical Questions," NBER Working Papers 23625, National Bureau of Economic Research, Inc.
    15. Lusk, Jayson L. & Crespi, John M. & McFadden, Brandon R. & Cherry, J. Bradley C. & Martin, Laura & Bruce, Amanda, 2016. "Neural antecedents of a random utility model," Journal of Economic Behavior & Organization, Elsevier, vol. 132(PA), pages 93-103.
    16. Constant D. Beugré, 2010. "Brain and Human Behavior in Organizations: A Field of Neuro-Organizational Behavior," Chapters,in: Neuroeconomics and the Firm, chapter 15 Edward Elgar Publishing.
    17. Lester, Bijou Yang, 2011. "An exploratory analysis of composite choices: Weighing rationality versus irrationality," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 40(6), pages 949-958.
    18. Solnais, Céline & Andreu-Perez, Javier & Sánchez-Fernández, Juan & Andréu-Abela, Jaime, 2013. "The contribution of neuroscience to consumer research: A conceptual framework and empirical review," Journal of Economic Psychology, Elsevier, vol. 36(C), pages 68-81.
    19. Angela A. Stanton & Mellani Day & Isabell M. Welpe (ed.), 2010. "Neuroeconomics and the Firm," Books, Edward Elgar Publishing, number 13502, April.
    20. Cary Frydman & Nicholas Barberis & Colin Camerer & Peter Bossaerts & Antonio Rangel, 2012. "Using Neural Data to Test a Theory of Investor Behavior: An Application to Realization Utility," NBER Working Papers 18562, National Bureau of Economic Research, Inc.
    21. Peter N. C. Mohr & Hauke R. Heekeren, 2012. "The Aging Investor: Insights from Neuroeconomics," SFB 649 Discussion Papers SFB649DP2012-038, Sonderforschungsbereich 649, Humboldt University, Berlin, Germany.
    22. Luca Stanca, 2011. "Social science and neuroscience: how can they inform each other?," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 58(3), pages 243-256, September.
    23. Victor Stango & Joanne Yoong & Jonathan Zinman, 2017. "The Quest for Parsimony in Behavioral Economics: New Methods and Evidence on Three Fronts," NBER Working Papers 23057, National Bureau of Economic Research, Inc.
    24. Marcum, Tanya M. & Blair, Eden S., 2011. "Entrepreneurial decisions and legal issues in early venture stages: Advice that shouldn't be ignored," Business Horizons, Elsevier, vol. 54(2), pages 143-152, March.

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