Neuroeconomics and the Study of Valuation

Abstract

Just over a decade ago neurobiologists knew almost nothing about the neural mechanisms of voluntary choice. In contrast, economists and psychologists working at that time had well-developed frameworks for describing the many hidden processes that must underlie choice, but these frameworks had very little impact in neurobiological circles. The last decade, however, has seen a revolution in the neurobiological understanding of choice that has been driven by an integration of economics and psychology into mainstream neuroscience. Today, the basic outlines of the primate system for decision making are emerging from studies on humans and monkeys that rely on techniques ranging from single-neuron electrophysiology to functional magnetic resonance imaging (fMRI). Indeed, since the last edition of this book was published a new field for the study of decision making has emerged, neuroeconomics, and an edited volume has been published that surveys the field (Glimcher, Camerer, Fehr, & Poldrack, 2008). This chapter provides an outline of the primate mechanism for choice as we understand it today. In broad strokes, we now believe that choice involves a two-stage neural process. The first stage, largely resident in the frontal cortex and the basal ganglia, learns and represents the value of our actions. The second stage, largely resident in a frontoparietal network, selects the option that has the highest subjective value from among the options before us at any moment in time.