Skip to main content
Log in

Social science and neuroscience: how can they inform each other?

  • Published:
International Review of Economics Aims and scope Submit manuscript

Abstract

Recent research indicates that an interdisciplinary approach bridging the gap between social science and neuroscience is a key factor for obtaining a better understanding of individual decision making and social phenomena. This paper focuses on reciprocal fairness as a paradigmatic interdisciplinary case study. We discuss the recent behavioral evidence on reciprocity, identifying several unanswered questions. We then review the relevant neuroeconomic evidence about reciprocal preferences, mind reading and empathy.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Similar content being viewed by others

References

  • Alexander R (1987) The biology of moral systems. Aldine de Gruyter, New York

    Google Scholar 

  • Andreoni J, Brown P, Vesterlund L (2002) What makes an allocation fair? Some experimental evidence. Games Econ Behav 40:1–24

    Article  Google Scholar 

  • Antonietti A, Iannello P (2011) Social sciences and neuroscience: a circular integration. Int Rev Econ 58(3). doi:10.1007/s12232-011-0132-y

  • Bacharach M, Guerra G, Zizzo D (2007) Is trust self-fulfilling? An experimental study. Theor Decis 63:349–388

    Article  Google Scholar 

  • Battigalli P, Dufwenberg M (2007) Guilt in games. Am Econ Rev Pap Proc 97:171–176

    Google Scholar 

  • Bhatt M, Camerer C (2005) Self-referential thinking and equilibrium as state of mind in games: fMRI evidence. Games Econ Behav 52:424–459

    Article  Google Scholar 

  • Binmore K (1998) Game theory and the social contract, II: just playing. MIT Press, Cambridge

    Google Scholar 

  • Blount S (1995) When social outcomes aren’t fair: The effect of causal attributions on preferences. Organ Behav Hum Decis Process 63:131–144

    Article  Google Scholar 

  • Bolton G, Brandts J, Ockenfels A (1998) Measuring motivations for the reciprocal responses observed in a simple dilemma game. Exp Econ 1:207–220

    Google Scholar 

  • Bolton E, Brandts J, Ockenfels A (2005) Fair procedures: evidence from games involving lotteries. Econ J 115:1054–1076

    Article  Google Scholar 

  • Bolton G, Ockenfels A (2000) ERC—a theory of equity, reciprocity and competition. Am Econ Rev 90:166–193

    Article  Google Scholar 

  • Bolton G, Ockenfels A (2005) A stress test of fairness measures in models of social utility. Econ Theory 25:957–982

    Article  Google Scholar 

  • Bowles S, Gintis H (2004) The evolution of strong reciprocity: cooperation in heterogeneous populations. Theor Popul Biol 65:17–28

    Article  Google Scholar 

  • Brandts J, Solà C (2001) Reference points and negative reciprocity in simple sequential games. Games Econ Behav 36:138–157

    Article  Google Scholar 

  • Camerer C (2007) Neuroeconomics: using neuroscience to make economic predictions. Econ J 117(519):C26–C42

    Article  Google Scholar 

  • Camerer C, Loewenstein G, Prelec D (2005) Neuroeconomics: how neuroscience can inform economics. J Econ Lit 43(1):9–64

    Article  Google Scholar 

  • Charness G (2004) Attribution and reciprocity in a simulated labor market: an experimental investigation. J Labour Econ 22:665–688

    Article  Google Scholar 

  • Cronby J (2007) Integrating social science with neuroscience: potentials and problems. BioSocieties 2:149–169

    Article  Google Scholar 

  • De Quervain D, Fischbacher U, Treyer V, Schellhammer M, Schnyder U, Buck A, Fehr E (2004) The neural basis of altruistic punishment. Science 305:1254–58

    Article  Google Scholar 

  • Dufwenberg M, Gneezy U, Güth W, van Damme E (2001) Direct versus indirect reciprocity: an experiment. Homo Oeconomicus 18:19–30

    Google Scholar 

  • Dufwenberg M, Kirchsteiger G (2004) A theory of sequential reciprocity. Games Econ Behav 47:268–298

    Article  Google Scholar 

  • Engelmann D, Fischbacher U (2009) Indirect reciprocity and strategic reputation building in an experimental helping game. Games Econ Behav 67(2):399–407

    Article  Google Scholar 

  • Falk A, Fehr E, Fischbacher U (2003) On the nature of fair behaviour. Econ Inq 41:20–26

    Article  Google Scholar 

  • Falk A, Fischbacher U (2006) A theory of reciprocity. Games Econ Behav 54:293–315

    Article  Google Scholar 

  • Falk A, Fehr E, Fischbacher U (2008) Testing theories of fairness—Intentions matter. Games Econ Behav 62:287–303

    Article  Google Scholar 

  • Fehr E, Camerer C (2007) Social neuroeconomics: the neural circuitry of social preferences. Trends Cogn Sci 11(10):419–427

    Article  Google Scholar 

  • Fehr E, Fischbacher U, Kosfeld U (2005) Neuroeconomic foundations of trust and social preferences: initial evidence. Am Econ Rev 95:346–351

    Article  Google Scholar 

  • Fehr E, Gächter S (2000) Fairness and retaliation—the economics of reciprocity. J Econ Perspect 14(3):159–181

    Article  Google Scholar 

  • Fehr E, Gächter S (2002) Altruistic punishment in humans. Nature 415:137–140

    Article  Google Scholar 

  • Fehr E, Schmidt K (1999) A theory of fairness, competition, and cooperation. Q J Econ 114:817–868

    Article  Google Scholar 

  • Fehr E, Schmidt M (2006) The Economics of Fairness, Reciprocity and Altruism: Experimental Evidence. In: Kolm SC, Ythier JM (eds) Handbook of the Economics of Giving, Altruism and Reciprocity, vol 1. Elsevier, Amsterdam, pp 615–691

    Google Scholar 

  • Frith U, Frith C (2003) Development and neurophysiology of mentalizing. Philos Trans R Soc Lond B Biol Sci 358:459–473

    Article  Google Scholar 

  • Gallagher H, Jack A, Roepstorff A, Frith C (2002) Imaging the intentional stance in a competitive game. NeuroImage 16:814–821

    Article  Google Scholar 

  • Gallagher H, Frith C (2003) Functional imaging of ’theory of mind’. Trends Cogn Sci 7(2):77–83

    Article  Google Scholar 

  • Gallese V, Goldman A (1998) Mirror neurons and the simulation theory of mindreading. Trends Cogn Sci 2:493–501

    Article  Google Scholar 

  • Gintis H (2000) Strong reciprocity and human sociality. J Theor Biol 206:169–179

    Article  Google Scholar 

  • Greiner B, Levati M (2005) Indirect reciprocity in cyclical networks: an experimental study. J Econ Psychol 26(5):711–731

    Article  Google Scholar 

  • Guth W, Konigstein M, Marchand N, Nehring K (2001) Trust and reciprocity in the investment game with indirect reward. Homo Oeconomicus 18:241–262

    Google Scholar 

  • Hamilton W (1964) Genetical evolution of social behavior. J Theor Biol 7(1):1–52

    Article  Google Scholar 

  • Jackson P, Meltzoff A, Decety J (2005) How do we perceive the pain of others: a window into the neural processes involved in empathy. Neuroimage 24(3):771–9

    Article  Google Scholar 

  • Jevons W (1871) The theory of political economy. Macmillan and Co, London

    Google Scholar 

  • Keysers C, Wicker B, Gazzola V, Anton J, Fogassi L, Gallese V (2004) A touching sight: SII/PV activation during the observation and experience of touch. Neuron 42(2):335–346

    Article  Google Scholar 

  • Knoch D, Fehr E (2007) Resisting the power of temptations: the right prefrontal cortex and self-control. Ann NY Acad Sci 1104:123–134

    Article  Google Scholar 

  • Knoch D, Pascual-Leone A, Meyer K, Treyer V, Fehr E (2006a) Diminishing reciprocal fairness by disrupting the right prefrontal cortex. Science 314(5800):829–32

    Article  Google Scholar 

  • Knoch D, Gianotti L, Pascual-Leone A, Treyer V, Regard M, Hohmann M, Brugger P (2006b) Disruption of right prefrontal cortex by low-frequency repetitive transcranial magnetic stimulation induces risk-taking behavior. J Neurosci 26:6469–6472

    Article  Google Scholar 

  • Knoch D, Nitsche M, Fischbacher U, Eisenegger C, Pascual-Leone A, Fehr E (2008) Studying the neurobiology of social interaction with transcranial direct current stimulation—the example of punishing unfairness. Cereb Cortex 18(9):1987–1990

    Article  Google Scholar 

  • Knoch D, Schneiderb F, Schunkb D, Hohmann M, Fehr E (2009) Disrupting the prefrontal cortex diminishes the human ability to build a good reputation. PNAS 106(49):20895–20899

    Article  Google Scholar 

  • Leimar O, Hammerstein P (2001) Evolution of cooperation through indirect reciprocity. Proc Roy Soc Biol Sci 268:745–753

    Article  Google Scholar 

  • Levine D (2011) Neuroeconomics? Int Rev Econ 58(3). doi:10.1007/s12232-011-0128-7

  • McCabe K, Houser D, Ryan L, Smith V, Trouard T (2001) A functional imaging study of cooperation in two-person reciprocal exchange. Proc Natl Acad Sci USA 98(20):11832–11835

    Article  Google Scholar 

  • McCabe K, Rigdon M, Smith V (2003) Positive reciprocity and intentions in trust games. J Econ Behav Org 52:267–275

    Article  Google Scholar 

  • Nowak M, Sigmund K (1998) The dynamics of indirect reciprocity. J Theor Biol 194:561–574

    Article  Google Scholar 

  • Nowak M, Sigmund K (2005) Evolution of indirect reciprocity. Nature 437(27):1291–1298

    Article  Google Scholar 

  • Offerman T (2002) Hurting hurts more that helping helps. Eur Econ Rev 46:1423–1437

    Article  Google Scholar 

  • Pelligra V (2011) Empathy, guilt-aversion, and patterns of reciprocity. J Neurosci Psychol Econ (in press)

  • Preston S, de Waal F (2002) Empathy: its ultimate and proximate bases. Behav Brain Sci 25(1):1–72

    Google Scholar 

  • Rabin M (1993) Incorporating fairness into game theory and economics. Am Econ Rev 83:1281–1302

    Google Scholar 

  • Ridley M (1996) The origins of virtue: human instincts and the evolution of cooperation. Penguin Books Ltd, London

    Google Scholar 

  • Rilling J, Gutman D, Zeh T, Pagnoni G, Berns G, Kilts C (2002) A neural basis for social cooperation. Neuron 35:395–405

    Article  Google Scholar 

  • Rilling J, Sanfey G, Aronson A, Nystrom E, Cohen J (2004) Opposing BOLD responses to reciprocated and unreciprocated altruism in putative reward pathways. Neuroreport 15:2539–2543

    Article  Google Scholar 

  • Rizzolatti G, Fadiga L, Gallese V, Fogassi L (1996) Premotor cortex and the recognition of motor actions. Brain Res Cogn Brain Res 3(2):131–141

    Article  Google Scholar 

  • Rizzolatti G, Fogassi L, Gallese V (2001) Neurophysiological mechanisms underlying the understanding and imitation of action. Nat Rev Neurosci 2:661–670

    Article  Google Scholar 

  • Sanfey A, Rilling J, Aronson J, Nystrom L, Cohen J (2003) The neural basis of economic decision-making in the ultimatum game. Science 300:1755–1758

    Article  Google Scholar 

  • Sanfey A, Loewenstein G, Cohen J, Mcclure S (2006) Neuroeconomics: cross-currents in research on decision. Trends Cogn Sci 10:108–116

    Article  Google Scholar 

  • Seinen I, Schram A (2006) Social status and group norms: indirect reciprocity in a repeated helping experiment. Eur Econ Rev 50(3):581–602

    Article  Google Scholar 

  • Shinsuke S, Kazuhisa N, Syoken F, Eizo A (2011) Neural basis of conditional cooperation. Soc Cogn Affect Neurosci 6(3):338–347

    Article  Google Scholar 

  • Singer T (2009) Understanding others: brain mechanisms of theory of mind and empathy. In: Paul WG, Colin FC, Ernst F, Russell AP (eds) Neuroeconomics: decision making and the brain. Academic Press, London, pp 251–268

    Google Scholar 

  • Singer T, Fehr E (2005) The neuroeconomics of mind reading and empathy. Am Econ Rev 95(2):340–345

    Article  Google Scholar 

  • Singer T, Kiebel S, Winston J, Dolan R, Frith C (2004) Brain responses to the acquired moral status of faces. Neuron 41(4):653–662

    Article  Google Scholar 

  • Singer T, Seymour B, O’Doherty J, Stephan K, Dolan R, Frith C (2006) Empathic neural responses are modulated by the perceived fairness of others. Nature 439:466–469

    Article  Google Scholar 

  • Sobel J (2005) Interdependent preferences and reciprocity. J Econ Lit 43:392–436

    Article  Google Scholar 

  • Stanca L (2009) Measuring indirect reciprocity: whose back do we scratch? J Econ Psychol 30(2):190–202

    Article  Google Scholar 

  • Stanca L (2010) How to be kind? Outcomes versus intentions as determinants of fairness. Econ Lett 106(1):19–21

    Article  Google Scholar 

  • Stanca L, Bruni L, Corazzini L (2009) Testing theories of reciprocity: do motivations matter? J Econ Behav Org 71(2):233–245

    Article  Google Scholar 

  • Stanca L, Bruni L, Mantovani M (2011) The effect of motivations on social indirect reciprocity: an experimental analysis. Appl Econ Lett (in press). doi:10.1080/13504851.2011.560105

  • Tabibnia G, Satpute A, Lieberman M (2008) The sunny side of fairness: preference for fairness activates reward circuitry (and disregarding unfairness activates self-control circuitry). Psychol Sci 19(4):339–347

    Article  Google Scholar 

  • Trivers R (1971) The evolution of reciprocal alruism. Q Rev Biol 46:35–57

    Article  Google Scholar 

  • Umiltà C (2011) Can cognitive neuroscience give rise to satellite disciplines, such as neuro-economics? Int Rev Econ 58(3). doi:10.1007/s12232-011-0129-6

  • Viale R (2011) Brain reading social action. Int Rev Econ 58(3). doi:10.1007/s12232-011-0130-0

  • Vromen J (2011) Neuroeconomics: two camps gradually converging: what can economics gain from it? Int Rev Econ 58(3). doi:10.1007/s12232-011-0127-8

  • Wedekind C, Milinski M (2000) Cooperation through image scoring in humans. Science 288:850–852

    Article  Google Scholar 

  • Wicker B, Keysers C, Plailly J, Royet JP, Gallese V, Rizzolatti G (2003) Both of us disgusted in my insula: the common neural basis of seeing and feeling disgust. Neuron 40:655–664

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Luca Stanca.

Rights and permissions

Reprints and permissions

About this article

Cite this article

Stanca, L. Social science and neuroscience: how can they inform each other?. Int Rev Econ 58, 243–256 (2011). https://doi.org/10.1007/s12232-011-0133-x

Download citation

  • Received:

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s12232-011-0133-x

Keywords

JEL Classification

Navigation