Neuroeconomics

In this post I give a brief overview of the recent field of neuroeconomics. It includes insights from economics, psychology, and neuroscience. Neuroeconomics is a very new discipline with an interaction of economics, psychology, and neuroscience (Reuter and Montag, 2016). The aim of neuroeconomics is studying decision making in human beings with a focus on its brain mechanisms. Neuroeconomics can be investigated with functional magnetic resonance imaging (fMRI), however, other techniques are also of interested use, such as EEG, genetics, endocrinology, and transcranial magnetic stimulation (TMS). Game Theory plays a mathematical role in neuroeconomics, which have grown out of economic game theory and behavioral economics. The aspects of game theory can be used to invent ideas of neuroscience about the brain, as well as psychological aspects concerning the mind and predictions of economic human behavior (Reuter and Montag, 2016).

Game theory is the study of mathematically objects which states and purposes do interact with each  other. From a neuroscience standpoint, game theory might be applied to assess the competitive firing of populations of neurons (Reuter and Montag, 2016).

The aim of neuroeconomics is to link neurophysiological and behavioral aspects of the decision process accordingly, and afterwards associate these links to psychological and mental activity aspects by making use of the formal models concerning game theory for the prediction, specification, and comparison of neural activity in the brain that is associated with decision making (Reuter and Montag, 2016).

The economic game has three basic objects. Firstly, there are the players. These are independent decision makers. Secondly, there are actions, which are described from the actions of a single player that makes it while performing the game. These actions might be divided among separate points of time, the situationally associated circumstances or at the stage in which the game is into. Finally, the third object, are the overall outcomes and as its consequences its utility that each one player has experienced (Reuter and Montag, 2016).