Neuroeconomics Lecture

Searching through the MIT World Lectures I just found a primer on Neuroeconomics. I find it to be a good introduction to the field and have some interesting examples of cognitive biases.

Lecture Introduction (Via MIT):

A pioneer in a “dangerously hot research area,” Drazen Prelec peers into the human brain while it makes decisions. In his corner of the new field of neuroeconomics, Prelec uses a functional magnetic resonance imaging (fMRI) machine to scan minds pondering the pros and cons of purchasing and selling products like Godiva chocolate and flash drives.

Lecture Excerpts (Via MIT):

“Prelec describes prospect theory, which captures in a formula how there is something about the way our mind deals with numbers (so that) if you look at positive things, you have one way of looking, and at negative, it’s a different way.”

“What was surprising, says Prelec, was that brain lies also. An area behind the forehead, the medial prefrontal cortex, which is associated with the perception of value, burst into more activity when the subject experienced the “$90” wine than with the exact same “$10” wine.”

Speaker Background (Via MIT):

Drazen Prelec’s research deals with the psychology and neuroscience of decision making (behavioral economics and neuroeconomics; risky choice, time discounting, self-control, consumer behavior). Prelec has been a member of the MIT faculty since 1991. He received his Ph.D. in experimental psychology and A.B. in applied mathematics from Harvard University. He was a Junior Fellow in the Harvard Society of Fellows, and has received a number of distinguished research awards, including the John Simon Guggenheim Fellowship.

Click here to watch the lecture

About Miguel Barbosa

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23. September 2008 by Miguel Barbosa
Categories: Curated Readings, Psychology & Sociology | Leave a comment

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