The emerging standard neurobiological model of decision making: Strengths, weaknesses, and future directions

Shih Wei Wu, Paul W. Glimcher

Research output: Chapter in Book/Report/Conference proceedingChapter

Abstract

The standard neurobiological model of decision making has evolved, since the turn of the twenty-first century, from a confluence of economic, psychological, and neurosci- entific studies of how humans make choices. Two fundamental insights have guided the development of this model during this period, one drawn from economics and the other from neuroscience. The first derives from neoclassical economic theory, which unambiguously demonstrated that logically consistent choosers behave "as if" they had some internal, continuous, and monotonic representation of the values of any choice objects under consideration. The second insight derives from neurobiological studies suggesting that the brain can both represent, in patterns of local neural activity, and compare, by a process of interneuronal competition, internal representations of value associated with different choices.

Original languageEnglish (US)
Title of host publicationThe Oxford Handbook of Computational Economics and Finance
PublisherOxford University Press
Pages688-713
Number of pages26
ISBN (Print)9780199844371
DOIs
StatePublished - Feb 5 2018

Keywords

  • Decision under risk
  • Dopamine
  • Medial prefrontal cortex
  • Neuroeconomics
  • Probability weighting function
  • Prospect theory
  • Rein-forcement learning
  • Revealed-preference theory
  • Reward prediction error
  • Striatum

ASJC Scopus subject areas

  • Economics, Econometrics and Finance(all)
  • Business, Management and Accounting(all)

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