The Case for Mindless Economics
How does neuroeconomics change the basic methods of economics? Find out below
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Abstract (Via Princeton)
Neuroeconomics proposes radical changes in the methods of economics. This essay discusses the proposed changes in methodology, together with the the neuroeconomic critique of standard economics. We do not assess the contributions or promise of neuroeconomic research. Rather, we offer a response to the neuroeconomic critique of standard economics. This research was supported by grants from the National Science Foundation. We thank Drew Fudenberg and
Introduction (Via Princeton)
Neuroeconomics proposes radical changes in the methods of economics. This essay discusses the proposed changes in methodology, together with the the neuroeconomic critique of standard economics. Our definition of neuroeconomics includes research that makes no specific reference to neuroscience and is traditionally referred to as psychology and economics. We identify neuroeconomics as research that implicitly or explicitly makes either of the following two claims:
Assertion I: Psychological and physiological evidence (such as descriptions of hedonic
states and brain processes) are directly relevant to economic theories. In particular, they
can be used to support or reject economic models or even economic methodology.
Assertion II: What makes individuals happy (‘true utility’) differs from what they
choose. Economic welfare analysis should use true utility rather than the utilities governing
choice (‘choice utility’).
