Neuroeconomics aims at improving the science of major economic phenomena such as the formation of prices and the design and performance of institutions. A revised model of choice is expected, based on the behaviour of the neuronal structures of the brain. Researchers are tackling issues such as determining how fundamental constructs like probabilities and payoffs are reflected in neuronal activity; disentangling the processing of inputs to choice from the act of choice; isolating learning, impulsive and analytic components of neuronal behaviour; and distinguishing how context affects the processing of the brain and subsequent levels of trust and cooperation in exchange.
KeywordsAllais paradox Choice Ellsberg paradox Experimental economics Learning Mixed strategy equilibrium Neuroeconomics Preference reversals Prisoner’s Dilemma Probability Regret Reputation Trust Ultimatum game
This material is based upon work supported by the National Science Foundation under Grant No. 0452477.
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