Can neuroimaging inform economic theories of decision making?

Farb, Norman A. S.

doi:10.2147/nan.s39339

Cited by 8 publications

(5 citation statements)

References 61 publications

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“…From the economist's vantage point, the crucial question is whether the large and increasing neuroscientific evidence, of which we have given some selected examples, can be expected to have any impact on economic theories (Farb, 2013). As neuroscientists we cannot enter into this lively debate, but we can summarize what we consider as the most important implications of neuroeconomics for cognitive neuroscience.…”

Section: Discussionmentioning

confidence: 99%

Neuroeconomics

Cappa¹,

Canessa²

2015

International Encyclopedia of the Social &Amp; Behavioral Sciences

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Neuroeconomics is a recent, fast developing area of cognitive neuroscience, investigating the brain mechanisms involved in economic decision-making. It is an intrinsically interdisciplinary field, taking advantage of several mature areas of research including behavioral economics, neuroscience of reward, and reinforcement learning theories. This is a selective review of experimental evidence related to some key concepts of this vast domain, starting from early neuropsychological evidence of the role of the prefrontal cortex in decision-making and adaptive learning from experience. The role of the reward system, delineated by animal studies and explored in humans by means of functional neuroimaging methods as a key mechanism responsible for behavioral learning, has been extensively investigated in decision-making situations involving uncertainty, temporal delay, and the exploration of potential rewards. The theoretical framework of prospect theory has been used to investigate the neural mechanisms involved in anomalies of choice, in particular in loss aversion. Another important area of neuroeconomic research deals with the neural mechanisms involved in social contexts, i.e., those underpinning theory of mind and reciprocal trust. These multiple approaches are contributing to the rigorous study of individual differences in decision-making and of their neurobiological foundations.

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Section: Discussionmentioning

confidence: 99%

Neuroeconomics

Cappa¹,

Canessa²

2015

International Encyclopedia of the Social &Amp; Behavioral Sciences

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“…In a complex and turbulent business environment, managers must make decisions that require complex trade-offs and risk considerations. Decision-making under risk is a complex cognitive process, requiring contribution and integration of actions from multiple regions of the human brain (Gold and Shadlen, 2007 ; Farb, 2013 ; Khani and Rainer, 2016 ). The scope of this study was to observe which cortical regions of the human frontal cortex are responsible for making risky decisions in a business context, as represented by the widely studied newsvendor problem.…”

Section: Discussionmentioning

confidence: 99%

Alterations of Cerebral Hemodynamics and Network Properties Induced by Newsvendor Problem in the Human Prefrontal Cortex

Wanniarachchi

Lang

Wang

et al. 2021

Front. Hum. Neurosci.

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While many publications have reported brain hemodynamic responses to decision-making under various conditions of risk, no inventory management scenarios, such as the newsvendor problem (NP), have been investigated in conjunction with neuroimaging. In this study, we hypothesized (I) that NP stimulates the dorsolateral prefrontal cortex (DLPFC) and the orbitofrontal cortex (OFC) joined with frontal polar area (FPA) significantly in the human brain, and (II) that local brain network properties are increased when a person transits from rest to the NP decision-making phase. A 77-channel functional near infrared spectroscopy (fNIRS) system with wide field-of-view (FOV) was employed to measure frontal cerebral hemodynamics in response to NP in 27 healthy human subjects. NP-induced changes in oxy-hemoglobin concentration, Δ[HbO], were investigated using a general linear model (GLM) and graph theory analysis (GTA). Significant activation induced by NP was shown in both DLPFC and OFC+FPA across all subjects. Specifically, higher risk NP with low-profit margins (LM) activated left-DLPFC but deactivated right-DLPFC in 14 subjects, while lower risk NP with high-profit margins (HM) stimulated both DLPFC and OFC+FPA in 13 subjects. The local efficiency, clustering coefficient, and path length of the network metrics were significantly enhanced under NP decision making. In summary, multi-channel fNIRS enabled us to identify DLPFC and OFC+FPA as key cortical regions of brain activations when subjects were making inventory-management risk decisions. We demonstrated that challenging NP resulted in the deactivation within right-DLPFC due to higher levels of stress. Also, local brain network properties were increased when a person transitioned from the rest phase to the NP decision-making phase.

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“…Several studies, spanning from 2007-2011, revealed that the MPFC, OFC and striatum constitute the reward network; the anterior cingulate cortex (ACC) and the insula compose the salience structure; and the DLPFC and posterior parietal cortex (pPAR) make up the executive chain [22]. This organization is represented in Fig.…”

Section: Decision-making Neural Networkmentioning

confidence: 99%

“…The fact that neural responses to unattended products predict later consumer choices [23] suggests that the encoding values in the brain may be an automatic process [22]. A complete understanding of the intrinsic mechanism of choice and decision-making will influence marketers and designers to conceive brands completely fitted to costumers' preferences.…”

Section: Neurol Scimentioning

confidence: 99%

Reading beyond the glance: eye tracking in neurosciences

et al. 2015

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From an interdisciplinary approach, the neurosciences (NSs) represent the junction of many fields (biology, chemistry, medicine, computer science, and psychology) and aim to explore the structural and functional aspects of the nervous system. Among modern neurophysiological methods that "measure" different processes of the human brain to salience stimuli, a special place belongs to eye tracking (ET). By detecting eye position, gaze direction, sequence of eye movement and visual adaptation during cognitive activities, ET is an effective tool for experimental psychology and neurological research. It provides a quantitative and qualitative analysis of the gaze, which is very useful in understanding choice behavior and perceptual decision making. In the high tech era, ET has several applications related to the interaction between humans and computers. Herein, ET is used to evaluate the spatial orienting of attention, the performance in visual tasks, the reactions to information on websites, the customer response to advertising, and the emotional and cognitive impact of various spurs to the brain.

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Can neuroimaging inform economic theories of decision making?

Cited by 8 publications

References 61 publications

Neuroeconomics

Neuroeconomics

Alterations of Cerebral Hemodynamics and Network Properties Induced by Newsvendor Problem in the Human Prefrontal Cortex

Reading beyond the glance: eye tracking in neurosciences

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