Basic Methods from Neoclassical Economics

Andrew Caplin, Paul W. Glimcher

Research output: Chapter in Book/Report/Conference proceedingChapter

Abstract

Much of neuroeconomics rests on an understanding of basic microeconomic thought. This chapter presents a concise overview of the main threads in modern economic studies of decision making. Beginning with a review of the history of both pricing theory and choice theory, the chapter describes the Marginal Revolution. It then goes on to develop Samuelson's fundamental Revealed Preference approach and the notion of axiomatic proof. Several of the most important theories that grew from Samuleson's work, including Expected Utility Theory, are described. The chapter concludes with a discussion of how axiomatic modeling approaches can be used as powerful tools in neuroscientific/neuroeconomic research by describing axiomatic studies of dopamine function.

Original languageEnglish (US)
Title of host publicationNeuroeconomics
Subtitle of host publicationDecision Making and the Brain: Second Edition
PublisherElsevier Inc.
Pages3-17
Number of pages15
ISBN (Print)9780124160088
DOIs
StatePublished - Sep 2013

Keywords

  • Axioms
  • Choice
  • Dopamine
  • Economic theory
  • Expected Utility Theory
  • Microeconomics

ASJC Scopus subject areas

  • Neuroscience(all)

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