Neuroeconomics: How Neuroscience Can Inform Economics

  title={Neuroeconomics: How Neuroscience Can Inform Economics},
  author={Colin Camerer and George Loewenstein and Drazen Prelec},
  journal={Cognitive Neuroscience eJournal},
Neuroeconomics uses knowledge about brain mechanisms to inform economic analysis, and roots economics in biology. It opens up the "black box" of the brain, much as organizational economics adds detail to the theory of the firm. Neuroscientists use many tools— including brain imaging, behavior of patients with localized brain lesions, animal behavior, and recording single neuron activity. The key insight for economics is that the brain is composed of multiple systems which interact. Controlled… 

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