Neuroeconomics

Posted: 10 Jan 2008

See all articles by George Loewenstein

George Loewenstein

Carnegie Mellon University - Department of Social and Decision Sciences

Scott Rick

University of Michigan, Stephen M. Ross School of Business

Jonathan D. Cohen

Princeton University - Department of Psychology

Abstract

Neuroeconomics has further bridged the once disparate fields of economics and psychology. Such convergence is almost exclusively attributable to changes within economics. Neuroeconomics has inspired more change within economics than within psychology because the most important findings in neuroeconomics have posed more of a challenge to the standard economic perspective. Neuroeconomics has primarily challenged the standard economic assumption that decision making is a unitary process - a simple matter of integrated and coherent utility maximization - suggesting instead that it is driven by the interaction between automatic and controlled processes. This article reviews neuroeconomic research in three domains of interest to both economists and psychologists: decision making under risk and uncertainty, intertemporal choice, and social decision making. In addition to reviewing new economic models inspired by this research, we also discuss how neuroeconomics may influence future work in psychology.

Keywords: decision making, emotions, dual-process theories, neuroscience, behavioral economics

Suggested Citation

Loewenstein, George F. and Rick, Scott and Cohen, Jonathan D., Neuroeconomics. Annual Review of Psychology, Vol. 59, January 2008, Available at SSRN: https://ssrn.com/abstract=1082448

George F. Loewenstein (Contact Author)

Carnegie Mellon University - Department of Social and Decision Sciences ( email )

Pittsburgh, PA 15213-3890
United States
412-268-8787 (Phone)
412-268-6938 (Fax)

Scott Rick

University of Michigan, Stephen M. Ross School of Business ( email )

701 Tappan Street
Ann Arbor, MI MI 48109
United States

HOME PAGE: http://webuser.bus.umich.edu/srick/

Jonathan D. Cohen

Princeton University - Department of Psychology ( email )

Green Hall
Princeton, NJ 08540
United States

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