Modeling Imprecision in Perception, Valuation, and Choice

2020 ◽  
Vol 12 (1) ◽  
pp. 579-601 ◽  
Author(s):  
Michael Woodford
Keyword(s):  
Decision Making ◽  
Experimental Psychology ◽  
Quantitative Relationship ◽  
Strategic Interaction ◽  
Economic Modeling ◽  
Stochastic Choice ◽  
Global Game ◽  
Perceptual Judgments ◽  
Economic Decision Making ◽  
Decoy Effects

Traditional decision theory assumes that people respond to the exact features of the options available to them, but observed behavior seems much less precise. This review considers ways of introducing imprecision into models of economic decision making and stresses the usefulness of analogies with the way that imprecise perceptual judgments are modeled in psychophysics—the branch of experimental psychology concerned with the quantitative relationship between objective features of an observer's environment and elicited reports about their subjective appearance. It reviews key ideas from psychophysics, provides examples of the kinds of data that motivate them, and proposes lessons for economic modeling. Applications include stochastic choice, choice under risk, decoy effects in marketing, global game models of strategic interaction, and delayed adjustment of prices in response to monetary disturbances.

The Fundamentals of Neuroeconomics

2016 ◽  
pp. 1-32 ◽  
Author(s):  
Kijpokin Kasemsap
Keyword(s):  
Game Theory ◽  
Decision Making ◽  
Temporal Discounting ◽  
Reward System ◽  
Strategic Interaction ◽  
Economic Behavior ◽  
Neural Systems ◽  
Neural Imaging ◽  
Economic Decision Making ◽  
Behavioral Methods

Neuroeconomics is an emergent multidisciplinary field that strives to understand how and why humans make decisions. The field brings together behavioral methods and sophisticated computational theories from microeconomics, an understanding of emotional influences on behavior from psychology, and human functional neural imaging from neuroscience. This chapter presents the fundamentals of neuroeconomics, thus describing the concept of neuroeconomics; neuroimaging applications; neuroeconomics and loss aversion; neuroeconomics and temporal discounting; neuroeconomics of decision making in humans and animals; neuroeconomics, behavioral economics, and irrationality; neuroeconomics and utility theory; neural systems in economic decision making; neural systems in reward system; neural systems in cognitive control system; game theory, strategic interaction, and neuroeconomic studies; and the types of evidence about economic behavior.

The Fundamentals of Neuroeconomics

2020 ◽  
pp. 99-130
Author(s):  
Kijpokin Kasemsap
Keyword(s):  
Game Theory ◽  
Decision Making ◽  
Temporal Discounting ◽  
Reward System ◽  
Strategic Interaction ◽  
Economic Behavior ◽  
Neural Systems ◽  
Neural Imaging ◽  
Economic Decision Making ◽  
Behavioral Methods

Neuroeconomics is an emergent multidisciplinary field that strives to understand how and why humans make decisions. The field brings together behavioral methods and sophisticated computational theories from microeconomics, an understanding of emotional influences on behavior from psychology, and human functional neural imaging from neuroscience. This chapter presents the fundamentals of neuroeconomics, thus describing the concept of neuroeconomics; neuroimaging applications; neuroeconomics and loss aversion; neuroeconomics and temporal discounting; neuroeconomics of decision making in humans and animals; neuroeconomics, behavioral economics, and irrationality; neuroeconomics and utility theory; neural systems in economic decision making; neural systems in reward system; neural systems in cognitive control system; game theory, strategic interaction, and neuroeconomic studies; and the types of evidence about economic behavior.

Economic decision making under conditions of extreme time pressure and option overload: an eye-tracking study

2008 ◽  
Author(s):  
Elena Reutskaja ◽  
Johannes Pulst-Korenberg ◽  
Rosemarie Nagel ◽  
Colin F. Camerer ◽  
Antonio Rangel
Keyword(s):  
Decision Making ◽  
Eye Tracking ◽  
Time Pressure ◽  
Economic Decision ◽  
Economic Decision Making

The Effect of Suppressing Negative Emotion on Economic Decision-making

2013 ◽  
Vol 44 (5) ◽  
pp. 693-700
Author(s):  
Qin WANG ◽  
Xue-Jun BAI ◽  
Long-Jian GUO ◽  
De-Li SHEN
Keyword(s):  
Decision Making ◽  
Negative Emotion ◽  
Economic Decision ◽  
Economic Decision Making
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