ANRV331-PS59-24ARI5November200720:9AR FurtherNeuroeconomicsClick here for quick links to Annual Reviews content online, 12including:GeorgeLoewenstein,ScottRick,• Other articles in this • Top cited articles• Top downloaded articles1DepartmentofSocialandDecisionSciences,CarnegieMellonUniversity,• AR’s comprehensive search2Pittsburgh,Pennsylvania15213,DepartmentofOperationsandInformationManagement,TheWhartonSchool,UniversityofPennsylvania,Philadelphia,3Pennsylvania19104,DepartmentofPsychology,CenterfortheStudyofBrain,MindandBehavior,PrincetonUniversity,Princeton,NewJersey08540,andDepartmentofPsychiatry,WesternPsychiatricInstituteandClinic,UniversityofPittsburgh,Pittsburgh,Pennsylvania15260;email:gl20@,srick@,jdc@:647–72KeyWordsFirstpublishedonlineasaReviewinAdvanceondecisionmaking,emotions,dual-processtheories,neuroscience,September17,2007behavioraleconomicsTheAnnualReviewofPsychologyisonlineat’sdoi: Rev. Psychol. :647-672. Downloaded from Zhejiang University on 08/24/08. For personal use only.
ANRV331-PS59-24ARI5November200720:9humanbehavior—the“equipmentfortheoldlife”andthehuman“powerofreflecting”—Contentsandoftheproblemscausedbyusingequip-INTRODUCTION.................648mentadaptedtotheoldlifetosolveproblemsDECISIONMAKINGUNDERin“adifferentmilieu”—ahumancivilizationRISKANDUNCERTAINTY....651thatisdramaticallydifferentfromthatwhichLITERATUREREVIEW...........652prevailedwhentheequipmentfortheoldlifeRiskAversionandLossAversion................655EvenbythetimethepassagereproducedSUMMARY.........................657abovewaspublished,thefieldofeconomicsINTERTEMPORALCHOICE.....657hadrejectedthetheoreticalperspectivethatLITERATUREREVIEW...........658canbegleanedfromitinfavorofafarSUMMARY.........................660simpler“rationalchoice”perspectivethatSOCIALDECISIONMAKING.....661treatedthepowerofreflecting,whichTug-LITERATUREREVIEW...........662wellviewedas“thedistinguishingcharacter-SUMMARY.........................665isticofourspecies,”astheloneforcedriv-CONCLUSION....................,theJournalofPoliticalEconomy,whereTugwell’spaperap-peared,-upofhisfirsthumanances-theefficiencyofmarkets,economists’em-tors;heisthesortofbeingwhofunctionsbracingoftherationalchoiceperspectivebestintheexhilarationsandthefatiguesgavethemaworldviewverydifferentfromofthehunt,ofprimitivewarfare,-destructive,economiststendStrangelyandsuddenlyhenowfindshimselftoviewpeopleasefficientmaximizersofself-transportedintoadifferentmilieu,keeping,interestwhomakemistakesonlywhenim-however,ashemust,.(thereseemstobeaninnatetendencytore-Despitethedivergentworldviewsofcon-flectandlearnwhichisadistinguishingchar-temporarypsychologistsandeconomists,theacteristicofourspecies),questions,largelydeferringattemptstofor-JournalofPoliticalEconomy,-INTRODUCTIONtrast,economicschosetobuildafoundationRexfordTugwell’sbrilliantanalysisofhumanofformaltheory,attheexpenseofadoptingbehaviorrepresentsoneofthelastgaspsofhighlysimplifiedand,ultimately,unrealisticasophisticatedpsychologicalaccountofeco-nomicbehaviorthatwasonceintegraltoeco-1nomics(),butwaslosttoTherationalchoiceperspectivemaythereforebeaman-ifestationofthe“isolationeffect,”-“disregardcomponentsthatthealternativesshare,andfo-icalperspectivetookaccountofthedifferentcusonthecomponentsthatdistinguishthem”(Kahnemancognitiveandmotivationalprocessesdriving&Tversky1979).648LoewensteinRickCohen··Annu. Rev. Psychol. :647-672. Downloaded from Zhejiang University on 08/24/08. For personal use only.
ANRV331-PS59-24ARI5November200720:9assumptionsabouttheprocessesgoverningresearchinpsychology,,,givencameapredominantlyempiricaldiscipline,theincreasingprominenceofneuroscienceBehavioraleconomicsbecameapredominantlytheoret-withinthefieldofpsychologyandtheopen-economics:-subdisciplineoffirstjournaldevotedexclusivelytoexperimen-odseconomicsthatandideas,itwasonlyamatteroftimeincorporatesmoretalresearchinpsychology,knownthenasthebeforebehavioraleconomicswouldembracepsychologicallyJournalofExperimentalPsychology,,intherealisticassumptionsfirstanalogousjournalineconomics,Exper-late1990s,thenewfieldofneuroeconomicstoincreasetheimentalEconomics,by82years().Neuroeconomics,wepredictivepowerofargue,hasfurthereconomictheoryThisisunfortunate,,,-publicationofRichardThaler’s(1980)re-spiredmorechangewithineconomicsthanmarkablearticle,“TowardaPositiveThe-withinpsychologybecausethemostimpor-oryofConsumerChoice,”,-bedrockassumptionwithineconomicsthatsearcharrived,inasense,custom-madefordecisionmakingisaunitaryprocess—asim-applicationtoeconomics,-insightsofneuroscienceisthatthebrainisnomics,sonamedinpartbecauseitdrewnotahomogeneousprocessor,butratherin-onbehavioraldecisionresearch,hasbeenavolvesameldingofdiversespecializedpro-greatsuccessstorydueinparttothestrengthcessesthatareintegratedindifferentwaysofthepsychologicalresearchuponwhichitwhenthebrainfacesdifferenttypesofprob-drew[fordetailsofthesedevelopments,,someeconomistshaveAngner&Loewenstein(2007)].cometoappreciateadistinctionbetweenau-Inevitablyandfortunately,however,be-tomaticprocesses,whichroughlycorrespondhavioraleconomicshasnowmovedbeyondantowhatTugwellcalledthe“equipmentfortheexclusiverelianceonbehavioraldecisionre-oldlife,”andcontrolledprocesses,whichcor-search;indeed,partofitsdynamismhasbeenrespondtowhatTugwellreferredtoastheitswillingnesstodrawuponotherlinesof“powerofreflecting.”Indeed,neuroeconomicshasalreadyin-spiredaspateofeconomicmodelsthatat-2KennethBinmore(1988,),aneconomist,oncede-tempttoformalizetheideathatjudgmentscribedthecontrastbetweenpsychologyandeconomicsandbehavioraretheresultoftheinterac-morebluntly:“Psychologistsaccuseeconomistsofhav-tionbetweenmultiple,oftenconflicting,pro-ing‘norespectforthedata’,,Bernheim&Rangeldoneonthebasictenetsonwhicheconomictheoryis(2004)modelthebrainasoperatinginei-founded...Butifeconomists‘havenorespectforthedata’,thera“cold”modeora“hot”‘havenorespectfortheory’.”modeistriggereddepends(stochastically)•Neuroeconomics649Annu. Rev. Psychol. :647-672. Downloaded from Zhejiang University on 08/24/08. For personal use only.
ANRV331-PS59-24ARI5November200720:9situationalfactors,whicharepartlyafunc-greatachievementofeconomicsisunder-tionofpreviousbehavior(.,whetherorstandingaggregation.”Economicmodelsin-notonechoosestoenterintoasituationformedbyneuroeconomicsmayoffernewin-thatislikelytotriggercraving).Loewensteinsighttopsychologistsinterestedinlarge-scale&O’Donoghue(2004)-Anotherpossibleavenueforimportationtween“deliberative”and“affective”,-stochasticprocess,theyassumethattheaffec-roscientiststendtobe,atleastbyeconomictivesystemisnormallyincontrolofbehavior,standards,rathermicroscopicintheirfocus—andthatthedeliberativesystemcaninfluencetypicallyfocusingonasingleinformation-theaffectivesystem’spreferencebyexert-processingtaskandaverylimitedrangeingcostlycognitiveeffortor“willpower.”,incontrast,Fudenberg&Levine(2006)modelchoicehasdevelopedbothanalyticalandsimulationastheoutcomeofastrugglebetweenamethodsformodelingthecoordinationofdi-long-runplayerandashort-runplayer(&Shefrin’s1981planner-doermodel).Thebrainis,infact,muchlikeamodernecon-Benhabib&Bisin(2005),whichconsistsofdi-trolled,executiveprocesses“constrain”auto-versespecializedunits,suchasfirms,thebrainmaticprocesses;theymonitorthedecisionsofconsistsofdiversesubsystemsadaptedforvar-automaticprocesses,interveningonlywheniousfunctions(Cohen2005).And,&Carrillo(2006)proposethatvelopmentsuchasawar(thefamousprob-controlledprocessesconstrainemotionalpro-lemofatransitionfrom“butter”to“guns”)cessesthatdisplaylimitedrationalitybecauseoranewtechnologysuchastheInternet,(.,usingcomputers,playingeconomicstowardaviewthat,accordingtovideogames,functioninginanewjob).Neu-onereviewofdualprocesses(Evans2008),isroscienceresearchhasbeguntoidentifysomewidelyacceptedbybothcognitive(Posner&ofthemechanismsthatareinvolvedinsuchSnyder1975,Shiffrin&Schneider1977)andlearningofnewtasks(seeHill&Schneidersocialpsychologists(Chaiken1980,Petty&2006forareview),buthasonlyrecentlybe-Cacioppo1981).Astheassumptionsunder-guntoaddresshowthebrainsolvesthecom-lyingeconomicmodelsbecomeincreasinglyplexproblemofallocatingscarceprocessingconsistentwithpsychologicalintuitionandresourcestocompetingtasks(.,Botvinickempiricalreality,,Braver&Cohen2000,).Givenitscentralfocusontheallocationmodelsmorereadilyimportable,leadingtoofscarceresources,,neuroeconomicshasTheresultingfreshpredictionsneednotgreatpotentialtocontributetopsychology,,,asEdwardGlaeserneuroeconomicsresearchthathasprimarily(2003,),aneconomist,notes,“[T],wefocus650LoewensteinRickCohen··Annu. Rev. Psychol. :647-672. Downloaded from Zhejiang University on 08/24/08. For personal use only.
ANRV331-PS59-24ARI5November200720:9ourreviewonthreedomainsofbehaviorofin-byKahneman&Tversky(1979),peopletyp-teresttobotheconomistsandpsychologists:icallymakedecisionswithamorelocalfocus;decisionmakingunderriskanduncertainty,they“bracket”theirdecisionsmorenarrowlyEU:expectedutilityintertemporalchoice,andsocialdecision().Mostpeoplewould,,notviewthegamblejustdiscussedintermsofdifferentfinallevelsofwealth,butwouldinsteadprocessitaspresented—DECISIONMAKINGUNDERasa50%chanceofwinning$20anda50%RISKANDUNCERTAINTYchanceoflosing$,peopletendWhenchoosingbetweenalternativecoursestodislikelossesmorethantheylikegains,aofaction,peoplerarelyknowwithcertaintyphenomenonknownaslossaversion(Tverskywhatconsequencesthoseactionswillpro-&Kahneman1991).Combinedwithnarrowduce;mostdecisionsaremadeundercondi-bracketing,,fromthealmosttheydosoistheexpectedutility(EU)model,universaltendencytorejectsymmetricbets—.,a50-50chancetogainorlose$100—,peoplechoosebe-tothepreferenceforinvestinginbondsovertweenalternativecoursesofactionbyassess-stocks(Benartzi&Thaler1995,Gneezy&ingthedesirabilityor“utility”ofeachaction’sPotters1997),tothetendencytoholdontopossibleoutcomes,weighingthoseutilitiesbystocksandhousesthatfallinvalue(Genesovetheirprobabilityofoccurring,andselecting&Mayer2001).thecourseofactionthatyieldsthegreatestOtherbehavioralresearchhasfocusednotsum—.,“expectedutility.”onlyontheutilityor“value”function,-plausibleandcanbederivedfromasetofsumesthatpeopleweighoutcomesaccordingseeminglysensibleaxioms(vonNeumanntotheirrawprobabilityofoccurring,behav-&Morgenstern1944),researchershaveun-ioralmodificationstoEUhaveassumedin-coveredawiderangeofexpectedutilitysteadthatpeopleoverweightsmallprobabil-anomalies—commonpatternsofbehavioritiesandunderweightlargeones(KahnemanthatareinconsistentwithEU(seeStarmer&Tversky1979)orthattheytendtoplace2000forareview).Initialattemptsbybe-disproportionateattentionontheworstandhavioraleconomiststoexplaintheseanoma-bestoutcomesthatcouldoccur(.,Quig-liesadheredtotheunitarydecision-makinggin1982),eitherofwhichcanhelptomakeperspective,,theseple,EUassumesthattheutilityofaparticu-modificationstoEU’sstandardassumptionslaroutcomeisnotsimplybasedonthatout-canexplainawiderangeofriskydecision-come,,forexample,agamblethatThereis,however,arangeofdecision-offersa50%chanceofwinning$20andamakingphenomenathatdonotappeartobe50%chanceoflosing$$1million,,atanyouviewthegambleasofferinga50%chanceexperientiallevel,peopleoftenseemtobeofofexperiencingtheutilityof$1,000,020andtwomindswhenitcomestorisks:theyfeara50%chanceofexperiencingtheutilityofoutcomesthattheyknowarenotobjectively$999,,asoriginallynotedbyseriousbutexperiencelittletrepidationMarkowitz(1952)•Neuroeconomics651Annu. Rev. Psychol. :647-672. Downloaded from Zhejiang University on 08/24/08. For personal use only.
ANRV331-PS59-24ARI5November200720:,.(2003),forexample,Immediateobjectivelynonthreatening,butarepreventedfoundthatactivationinmedialprefrontalemotions:emotionsbytheiremotionalreactionsfromactingoncortex(MPFC;(Barlow1988,Epstein1994).jections)waslowerafterfailingtoreceiveanStandardeconomicSuchconflictsarenotlimitedtophobics;anticipatedrewardthanafteranticipating,andtheoryassumesmanypeoplegreatlyfearoutcomestheythenreceiving,noreward(-makersarecognitivelyrecognizeashighlyunlikely(.,2005).Similarly,severalstudieshavefoundinfluencedbyairplanecrashes).thatactivationinanotherdopaminergictar-anticipated,ratherthanimmediate,Toaccountforregularitiesofthistype,get,nucleusaccumbens(NAcc),wasgreateremotionsLoewensteinetal.(2001)proposedthe“riskfollowingtheunanticipateddeliveryofjuiceMPFC:medialasfeelings”(RAF)hypothesis,whichpostu-andwaterthanaftertheanticipateddeliveryprefrontalcortexlatedthatpeoplereacttorisksattwolevels—ofjuiceandwater(,McClureNAcc:).Thisisconsistentwithearlieran-accumbensionpositedbyunitarymodels,butalsoatimalresearch,whichhasfoundthatdopamineanemotionallevel;thatis,differentevalu-neuronswithintheventralstriatumofmon-ativemechanismsusingdifferentcostfunc-keysaresensitivetonewinformationabouttionsmayeachresponddifferentlytothesameanticipatedrewards,,emotionalre-changesrelativetothereferencepointofex-sponsestoriskstendtobestronglyrelatedpectations(.,).Thistonewness;weoverreactemotionallytonewresearchsuggeststhatthetendencytoencoderisks(oftenlow-probabilityevents)andun-gamblesasgainsandlossesratherthanasfi-derreacttothosethatarefamiliar(thoughnallevelsofwealthmaynotsimplybeduetheymaybemuchmorelikelytooccur).Thistothegreatersimplicityoftheformer,butcanexplainwhy,forinstance,peopleseemedrathertoahardwiredtendencyforspecifictoinitiallyoverreacttotheriskofterrorismneuralcircuitstorespondtodeviationsfromintheyearsimmediatelyfollowing9/-riskofdriving—eating,drinking,,.(2002)conductedanexperimentNeuroeconomicresearchondecisioninwhichparticipantsplayedagamethatmakingunderriskanduncertaintyhasthusfarrequiredoccasionalbluffing,,,,wereviewsomeofthemajor(LeDoux1996),(.,).Knutsonetal.(2001)LITERATUREREVIEWfoundthatself-reportedhappinessandNAccactivationincreasedasanticipated(probabilis-RiskAversionandLossAversiontic)gainsincreased().Severalearlystudiesinneuroeconomicsfo-ThesestudiessupporttheRAFhypothesiscusedonunderstandingwhypeoplearesen-thatsalientriskyoutcomeselicitemotional652LoewensteinRickCohen··Annu. Rev. Psychol. :647-672. Downloaded from Zhejiang University on 08/24/08. For personal use only.
ANRV331-PS59-24ARI5November200720:9reactions,&McClellandonthekeyRAFprediction,namelywhether(2004)(amongnonpatientsVMPFC:Damasio(1994)andBecharaetal.(1997)only)indicatedknowledgeoftheadvanta-ventromedialhaveproposed,consistentwithRAF,thatgeousstrategymorereliablythandidactualprefrontalcortexdecisionmakersencodetheconsequencesbehaviorandthatparticipantswererarelyableofalternativecoursesofactionaffectivelytoplayadvantageouslywithoutbeingabletoandthatsuch“somaticmarkers”-aconsequence,(1997),,Becharaandcol-whichemotionsleadtobetterdecisionmak-leagues()(1994)originallyarguedthathaviorofindividualswithandwithoutdam-theventromedialprefrontalcortex(VMPFC)agetotheamygdala,theorbitofrontalcortex,playsacriticalroleinthisaffectiveen-therightinsularcortex,orthesomatosensorycodingprocess,andBecharaetal.(1997)cortex(regionscriticalfortheprocessingofthereforecomparedthebehaviorofindivid-emotions;.,,DolanualswithandwithoutVMPFCdamagein2002),play-weregivenachancetobetonaseriesofcoinerscoulddrawcardsfromoneoffourdecks,flipsthatwouldeachresultinwinning$$100gainsandtwoorlosing$-ofwhichcontained$-tiveexpectedvalue,,.(1997)foundthatbothnonpatientsemotions,,individu-consistentwiththesomaticmarkerhypoth-alswithVMPFCdamageresumedsamplingesis,.(1997)’“endowmentTheBecharaetal.(1997)studystimulatedeffect”(Thaler1980),whichreferstotheten-muchinterestandsubsequentresearch(901dencyforpeopletovalueanobjectmorecitationsaccordingtoGoogleScholarwhenhighlyiftheypossessitthantheywouldvaluethisreviewwenttopress),(.(1990),forexample,demonstratedthereview).Maia&McClelland(2004),forexam-effectbyendowingonegroupofparticipantsple,proposethatthequestionnairesBechara(sellers)withanobjectandgivingthemtheetal.(1997)•Neuroeconomics653Annu. Rev. Psychol. :647-672. Downloaded from Zhejiang University on 08/24/08. For personal use only.
ANRV331-PS59-24ARI5November200720:9participants(choosers)-regions,,showedsignificantlyincreasingAlthoughsellersandchoosersareinidenti-activationasthesizeofthepotentiallossin-calwealthpositions,,activationindorsalandven-(leavewithmoneyorobject),sellersholdouttralstriatumandVMPFC,-Weberetal.(2007)attemptedtoexam-wards(.,),showedin-inetheneuralunderpinningsoftheendow-creasingactivationasgainsincreasedandde-menteffectinanexperimentinwhichpar-creasingactivationaslossesincreased(,partici-oftheformer)..(2007)likeofplaying“mixed”gambles,-thesellingconditionthaninthebuyingcon-ever,inandofitself,-theresultsofthisstudy,(.,$10versusa10%betweenhowmuchpeopledemandtosellachanceof$100),-aversewhenitcomestogamblesonelossandonegain(sellinginvolveslosinginvolvinggains(aslongasprobabilitiesarethegoodandgettingmoney;buyinginvolvesinthemid-range)andtoberisk-seekingforlosingmoneyandgettingthegood).,Tverskychoosing(gettingthegoodorgettingmoney),&Kahneman(1981),andinparticu-condition,participantsaretold,“,-Indeed,conflictingwiththeconclusionofgramBisadopted,thereisa1/3probabilityWeberetal.(2007)thatlossesbringqualita-that600peoplewillbesavedanda2/3prob-tivelydifferentprocessesintoplayisastudyabilitythatnoonewillbesaved.”InthelossbyTometal.(2007)thatmoredirectlyin-condition,participantsaretold,“IfprogramvestigatedtheneuralunderpinningsoflossCisadopted,,thereisa1/3probabilitythatgivenaseriesofoptionstoacceptorrejectanobodywilldieanda2/3probabilitythat600seriesofgamblesthatoffereda50%chancepeoplewilldie.”Mostpeoplepresentedwithofwinningmoneyanda50%chanceoflos-thesedecisionspreferAtoBandDtoC,which654LoewensteinRickCohen··Annu. Rev. Psychol. :647-672. Downloaded from Zhejiang University on 08/24/08. For personal use only.
ANRV331-PS59-24ARI5November200720:9issurprisingbecauseprogramAisidenticaltoAmbiguityAversionprogramC,,suchapatternofchoicesisfMRI:-tive,whichassumesthatdecisionsarebasedimagingever,intherealworld,peopleoftenmakeonthelikelihoodanddesirabilityoffinalACC:&Tversky(1979)ac-cingulatecortexprobabilities—underconditionsof“ambigu-countforthis“reflectioneffect”bypropos-ity.”Somedecision-researchershavearguedingthatthemarginalvalueofbothgainsandthatthereisnomeaningfuldifferencebe-lossesgenerallydecreaseswiththeirmagni-tweenuncertain(probabilistic)(1954),amongothers,ar-risk-aversioninthedomainofgains(.,aguedthat,evenwhenpeoplecannotarticulatepreferenceforacertaingainofxoveragambletheprobabilityofaparticularevent,theystillwithanexpectedvalueofx),andrisk-seekingbehaveasiftheeventhasaspecific“subjec-inthedomainoflosses(.,apreferencefortiveprobability.”However,DanielEllsbergagamblewithanexpectedvalueof–xovera(1961),inafamouspaper,arguedthatpeoplecertain–x),(equivalent)programthatwilllosepoint,,eachcontainingredand/orRecentneuroeconomicresearchsuggests,,thatfearmayalsoplayaroleinballs,.(2006)askedparticipantstochoosebe-ballofadesignatedcolorfromanurnwinstweencertainandriskygainsandlosseswhile$-authorsfoundthatamygdalaactivationwastingonredorblackfromUrnI,whichinsub-greaterwhenparticipantschosecertaingainsjectiveprobabilitytermscanbetakentoimplyoverriskygainsaswellaswhenparticipantsthattheybelievethateachhasa50%,peopleareindifferentover,DeMartinoetal.(2006)foundthatac-tobettingonredorblackfromUrnII,whichtivityinanteriorcingulatecortex(ACC),greaterwhenparticipantsmadechoicesthatmostpeoplepreferbettingonredfromUrnrancountertothereflectioneffect(.,riskyIItobettingonredfromUrnIandbettinggainsovercertaingains,certainlossesoveronblackfromUrnIItobettingonblackfromriskylosses).TheACChasbeenhypothe-UrnI,whichisimpossibletomakesenseofsizedtodetectandsignaltheoccurrenceofifonebelievesthatpeoplearebehavingasifconflictsininformationprocessing(,).Accordingly,-muchattentionsinceEllsberg’sseminalworkconsistentwiththereflectioneffectthanbe-in1961,.(2007),thenationshavebeenproposed(.(2006)arecon-1986),(Kahneman&thatpeoplereactpessimisticallytoambiguousFrederick2006).•Neuroeconomics655Annu. Rev. Psychol. :647-672. Downloaded from Zhejiang University on 08/24/08. For personal use only.
ANRV331-PS59-24ARI5November200720:9probabilities,:-Deckcondition,gamblesoffereithercortexassumesthatpeopletreatprobabilitiesasifclearprobabilities(.,a50%chanceofwin-theywereoutcomesand,muchastheytendtoning$10)orambiguousprobabilities(.,berisk-aversewithrespecttooutcomes(.,anunknownchanceofwinning$10).Inatheypreferasure$500overa50-50chancetoKnowledgecondition,gamblesarebasedongainzeroor$1000),theyarealsorisk-averseeithereventsparticipantshavesomeknowl-withrespecttoprobabilities(.,theypre-edgeabout(.,win$10bycorrectlyguessingfera“sure”50%chanceofwinningoverawhetherthehightemperatureinNewYork◦50-50chanceofhavingeithera0%or100%CityonNovember7,2003wasabove50F)orchanceofwinning).Finally,athirdexplana-eventsparticipantslikelyhavefarlessknowl-tionassumesthatambiguityaversioninvolvesedgeabout(.,win$10bycorrectlyguessingtheoverapplicationofaheuristicthatoftenwhetherthehightemperatureinDushanbe,makessense:Avoidbettingwhenotherpeo-TajikistanonNovember7,2003wasabove◦plepossessinformationthatyoulack,orwhen50F).Finally,inanInformedOpponentcon-youlackinformationthatwouldbehelpfulindition,,butinanCurleyetal.(1986),;intheriskcondition,-averse,,sionisnotdrivenbypessimismabouta“hos-acardisdrawnfromthedeck,andparticipantstile”,castingdoubtontheAcrossallconditions,Hsuetal.(2005),Curleyetal.(1986)foundthatpar-orbitofrontalcortex(OFC;aregionthoughtticipantsweresignificantlymoreambiguity-tointegratecognitiveandemotionalinputs,.,)wassignificantlysengamblewouldbeplayedandtheurn’-ambiguityaversionisduetosocialpresen-terestingly,,,suggestinghaverevealedotherinterestingmoderatorsthatambiguity-inducednegativeaffectwas(.,Fox&Tversky1995,Heath&Tverskynogreaterwhenothershadinformationthe1991,Ku¨hberger&Perner2003),-andambiguity-neutral,Hsuetal.(2005)··Annu. Rev. Psychol. :647-672. Downloaded from Zhejiang University on 08/24/08. For personal use only.
ANRV331-PS59-24ARI5November200720:,canbederivedfromasetofprimitive,explicitlyfavoranyoneparticularexplanationintuitivelycompellingaxioms(Koopmansforambiguityaversion,whatisclearisthat1960),severalanomalieshavebeenidentifiedDU:discountedpeopleappeartohaveanimmediatenegativethatcallthemodel’(-view).Oneofthemostimportant,andfrequentlySUMMARYcriticized,assumptionsofDUistheassump-Theneuroeconomicresearchondecisiontionofexponentialdiscounting,whichim-makingunderriskanduncertaintyhaspliesthatagiventimedelayleadstothesameyieldedsomeprovocativefindings,,,forexample,presumablyleadstothesame(2005).(2007),effect,butunfortunately,theirexperimentalthereisstrongevidencethatpeople(aswellasdesign(comparingsellingpricestobuyinganimals)donotdiscountthefutureexponen-prices)(Kirby&Herrnstein1995,Rachlin&AndwhileDeMartinoetal.’s(2006)workonRaineri1992).Rather,peoplecaremoreaboutthereflectioneffectisreadilyinterpretedasthesametimedelayifitisproximalratherthanevidenceformultiplesystems(Kahneman&distal,ageneralpatternthathasbeenreferredFrederick2006),Tometal.(2007)explicitlytoas“hyperbolictimediscounting”(Ainslieinterprettheirresultsregardinglossaversion1975).Forinstance,-apleasurablegoodfromtodaytotomorrowisnally,theresultsofHsuetal.(2005),-Severalhypotheseshavebeenadvancedtoportfortheproposedroleofemotioninriskyexplainwhypeoplediscountthefuturehyper-decisionmaking,,ineffect,-ever,despitethesuperficialsimilarity,-oftraining,ournearestevolutionaryrelativestertemporalchoice—,Stevensetal.(2005)(DU)modelisthedominantmodelofin-reportthatcotton-toptamarinmonkeysaretertemporalchoiceineconomics(Samuelsonunabletowaitmorethaneightsecondsto1937).AlthoughtheDUmodel,•Neuroeconomics657Annu. Rev. Psychol. :647-672. Downloaded from Zhejiang University on 08/24/08. For personal use only.
ANRV331-PS59-24ARI5November200720:.(2004b)testedthehypoth-samemechanismcouldproducefunctionsthatesisbymeasuringthebrainactivityofpartici-differsodramaticallyinmagnitudeofdis-pantswhiletheymadeaseriesofintertempo-counting,,muchralchoicesbetweensmallproximalrewardsaspeopleoftenfeeloftwomindswhenit($Ravailableatdelayd)andlargerdelayed′′comestodecisionmakingunderrisk,suchrewards($Ravailableatdelayd),where$R′′intrapersonalconflictsareevenmorepreva-<$Randd<$5lentanddramaticwhenitcomestointertem-to$,andtheporalchoice(.,’sdiet).wastoexaminewhethertherewerebrainre-Neuroeconomicresearchonintertempo-gionsthatshowelevatedactivation(relativeralchoicehaslargelyfocusedonwhethertoaresting-statebenchmark)onlywhenim-behaviorcanbebetterexplainedbythein-mediacyisanoption(.,activationwhend=-0,butnoactivationwhend>0),.(2004b)foundthattimemonlyreferstothemedialandorbitalregionsdiscountingresultsfromthecombinedinflu-offrontalcortex(-baseofthefrontallobes,respectively),thealimbiccorticalstructures,whichareknownamygdala(alongtheinnersurfaceofthetem-toberichindopaminergicinnervation,areporallobes),theinsularcortex(atthejunctionpreferentiallyrecruitedforchoicesinvolv-ofthefrontalandtemporallobes),-subcorticalcounterparts,isthoughttobecrit-trast,fronto-parietalregions,whichsupporticaltoemotionalprocessing(Dalgleish2004).highercognitivefunctions,arerecruitedforSomeevidencesuggeststhatthesestructuresallintertemporalchoices(ascontrastedwithpreferentiallyrespondtoimmediatelyavail-restperiods).Moreover,theauthorsfindthatablerewards(,2007),butwhenchoicesinvolvedanopportunityforim-recentresearcharguesthatthesestructuresmediatereward,thusengagingbothsystems,respondtorewardsatalldelays().Belowweexaminethecompet-inlimbicregionsisassociatedwithchoos-ingclaimsaswellasrelatedneuroeconomicinglargerdelayedrewards,-Insteadofassumingthathyperbolicdiscount-entmethodsfoundthatpeoplewithgreateringishardwiredintoourevolutionaryappa-activationintheselimbicrewardregionsinratus,someresearchershaveproposedthatresponsetogainingorlosingmoneyalsohyperbolicdiscountingreflectstheoperationplacegreaterweightonimmediaterewardsoftwofundamentallydifferentsystems,onerelativetodelayedrewards().aboutthefuture,andtheotherdeliberative,Note,however,thatsincetherewardswhichdiscountsoutcomesmoreconsistentlyweregiftcertificates,theconsumptiontheyacrosstime(.,Loewenstein1996,Shefrinaffordedwasnotimmediateinanycon-&Thaler1988).,658LoewensteinRickCohen··Annu. Rev. Psychol. :647-672. Downloaded from Zhejiang University on 08/24/08. For personal use only.
ANRV331-PS59-24ARI5November200720:9McClureetal.(2007)-definedimmedi-smallamountofjuiceorwaterimmedi-ateanddelayedrewards,notethatconsumersately(byhavingitsquirtedintotheirmouth)-thepriceofagoodrepresentshowmuchfu-Clureetal.(2004b),McClureetal.(2007)turepleasuremustbeforgonetofinanceim-foundthatlimbicregionswerepreferen-mediateconsumption,itisnotatallclearthattiallyrecruitedforchoicesinvolvingim-peoplespontaneouslyconsidersuch“oppor-mediatelyavailablejuiceorwater,whereastunitycosts”-parietalregionswererecruitedforallConsider,forinstance,.(2006)inwhichparticipantswereaskedTheextenttowhichsuchfindingsactuallyiftheywould(hypothetically)bewillingtosupportatwo-systemaccountofintertem-purchaseadesirablevideofor$,howeverresearcherssimplyvariedwhetherthedeci-(see,.,Ainslie&Monterosso’s2004com-sionnottobuyitwasframedas“).Glim-entertainingvideo”or“keepthe$.(2007;Experiment2)recentlycon-otherpurchases.”Althoughthetwophrasesductedastudyinwhichparticipantsmadetworepresentequivalentactions,-Optionlightsthepleasurethatisforgonebypur-condition,.(2006)-IntheDelayed-Optioncondition,partici-nitycostssignificantlyreducedthepropor-pantschosebetweensmallrewardsavailabletionofparticipantswillingtopurchasetheatadelayof60daysandlargerrewardsvideo,.(2007),ven-Ifpricesdonotalwaysdeterspendingtralstriatum,andposteriorcingulatewerethroughadeliberativeconsiderationofop-notpreferentiallyrecruitedforchoicesin-portunitycosts,-inspendingdecisions?Knutsonetal.(2007)ever,-inwhichparticipantschosewhetherornottentwithpreviousbehavioralresearchontopurchaseaseriesofdiscountedconsumerintertemporal“preferencereversals”(,Kirby&Herrnstein1995,$20tospendlar&Navarick1984,),andweretoldthatoneoftheirdecisionswouldGlimcheretal.(2007)foundthatpartici-ultimatelyberandomlyselectedtocountforpantsadoptedan“assoonaspossible”,-ticipantsindicatedhowmuchtheylikedeachically,.(2007)•Neuroeconomics659Annu. Rev. Psychol. :647-672. Downloaded from Zhejiang University on 08/24/08. For personal use only.
ANRV331-PS59-24ARI5November200720:9activation,,aswelllikedbyself-proclaimedCoke-loversKnutsonetal.(2007),whileparticipantsweredrinkingfirstsawthepricecorrelatednegativelywithCokeandPepsi,(aregionoftenassociatedwithpreviouslybeenobservedinconnectionwiththeexperienceofreward;,,,(),unfairness(’)stronglycorrelated2003),andsocialexclusion(-2003).Thus,whendelayedrewardsarenotencedpleasurecorrelatewithbehavioralpref-4explicitlyrepresented(asin,.,McClureerences,butnotstatedpreferences?),butratherimplicitlycapturedtoanswerthisquestion,McClureetal.(2004a)byprices,participantsappeartorelyonrananotherstudyinwhichparticipantswereananticipatory“painofpaying”(Prelec&eithertoldthattheywereabouttoreceiveLoewenstein1998)todetertheirspending,Cokeorthattheywereabouttoreceiveei-ratherthananexclusivelydeliberativecon-therCokeorPepsi;afterbothsignals,(.,hippocampus,dorsolateralpre-SubsequentresearchbyRicketal.(2007)frontalcortex),activationinVMPFC,,-mation(.,aboutbrands),(2004b,2007)foundthatlimbicandparal-etal.(2004a)firstaskedparticipantswhetherimbiccorticalstructures,,“statedpreferences”wouldCokeandPepsiandindicatewhichtheypre-manifestthemselvesbehaviorally,,,-ceivePepsiorthattheywereabouttoreceiveeitherCokerelationbetweenstatedandbehavioral(.,-test)··Annu. Rev. Psychol. :647-672. Downloaded from Zhejiang University on 08/24/08. For personal use only.
ANRV331-PS59-24ARI5November200720:9toberichindopaminergicinnervation,-preferentiallyrecruitedforchoicesinvolv-thoughinsomecases(.,parentstowardingimmediatelyavailablerewards,whereaschildren)theremaybeanelementofaltru-Welfare:fronto-parietalregions,whichsupporthigherismthatcouldpotentiallybemodeledinthiswell-being;cognitivefunctions,arerecruitedforallin-fashion,.(2007)abouttheirownpayoffandeitherthedif-debatewhetherfoundevidenceconsistentwiththehypoth-ferencebetweentheirownpayoffandoth-welfareisesisthatpain,ratherthanattentiontoop-ers’payoffsorthedifferencebetweentheirsynonymouswithportunitycosts,(Andreoni&Miller2002,Bolton1991,or(behaviorally)Bolton&Ockenfels2000,Charness&RabinrevealedpreferencesresearchbyRicketal.(2007)suggeststhatthepainofpayingcanproduceadivergencebe-2002,Fehr&Schmidt1999,,Rabin1993).McClureetal.(2004a)(2007),realisticaccountofother-regardingprefer-however,havearguedagainstadual-systemences,,asever,asnotedabove,theirstudyfailedtoob-istrueforriskydecisionmakingandintertem-servemanyintertemporal“preferencerever-poralchoice,peopleoftenreacttootherpeo-sals,”aregularitycommonlyfoundinpurelypleatbothanemotionalandamoreintellec-behavioralstudiesandotherneuroimagingtual/,-cryinginamovie,wecanbedeeplymovedbyidencethereforesupportsamultiplesystemspeoplewhodonotwarrantsympathy—evenaccountofintertemporalchoice,,suchasmasscalamities,iftheyoccurindistantpartsoftheworldtopeo-plewithwhomwearenotfamiliar,canbarelySOCIALDECISIONMAKINGtouchourheartstrings,-tertemporalchoice,nosuchbenchmarksex-turethesephenomena,aswellasavarietyofistforhowpeopleshouldbehavetowardoth-experimentalfindings,Loewenstein&-lineeconomistshaveassumed(2007)haveproposedadual-processmodelofthatpureself-interestis,orshouldbe,thehelpingbehaviorinwhichasympatheticbutnorm,-rangingexperimentalTheneuroeconomicsliteratureis,inthisresultsshowingthecontrary,butwouldalsocase,highlysupportiveofsuchaperspec-clashwithcommonplaceobservationsofbe-tiveoverall,although,asdiscussedbelow,“other-regarding”behaviornotonlydemonstrates6Distasteforinequalityisnotanexclusivelyhumanprop-thatpeoplecareaboutthewelfareofothers,&deWaal(2003)findthatcapuchinmonkeysbutalsochallengesthevalidityofsomeofthewillforgoconsumingcucumberswhensimilarmonkeysaregivengrapes,-moreprimitivemodelsofsocialpreferences—changingtheirtokensfortheinferiorreward,.,•Neuroeconomics661Annu. Rev. Psychol. :647-672. Downloaded from Zhejiang University on 08/24/08. For personal use only.
ANRV331-PS59-24ARI5November200720:,somere-emotionalresponsesthan“impersonal”moralsearchhassuggestedthatself-interestsome-dilemmasthatrequirealessdirectinflictionoftimesreliesondeliberate(andpossiblyevenharm,theyconfrontedparticipantswithsev-deliberative)suppressionofamoreemo-eralversionsofeachdilemmawhilescanningtionaldesireforfairness(),whereasotherworkhassuggestedseveralnonmoraldilemmasthatrequiredathatself-interestisthemoreevolutionar-similardegreeofmentaleffort,asjudgedbyilyprimitivedesirethatissometimessup-reactiontimes(.,decidingbetweentravel-pressedbyfairnessconcerns(-2006).Belowweexaminetherelevantstraints).evidenceaswellasotherneuroeconomicre-Aspredicted,,suchasmedialfrontalandposteriorparacingulatecortex,,forexample,oneoftheinpersonalmoraldilemmas,“trolley”dilemmas(Thomson1986),(2001;)(.,judgingthatitisappropriateanalternatesetoftrackswhereitwillkillonetopushthestrangertohisdeath),butmorallyacceptabletohittheswitch().Inanobjectivelyequivalent“”dilemma(Thomson1986),-thatmustbecognitivelyovercomeinorderningthetracks,.(2007)alsofoundthatemo-andontothetracksbelow,,lesionstobrainregionsnotdirectly().associatedwithemotionalprocessing,ornoWhyisitonlysometimesmorallyaccept-brainlesions,andwereconfrontedwithase-abletokillonetosavefive?,Greeneetal.(2001)proposedthatpatientswithVMPFClesionstypicallythatthethoughtofpushingsomeonetohisshowdiminishedemotionalresponsivityindeathismoreemotionallydistressingthanthegeneralandseverelyreducedsocialemotionsthoughtofflippingaswitchthatwouldcausea(.,shame)inparticular(.,-1999),theseparticipantswerepredictedtogatewhether“personal”moraldilemmasthatfindutilitarianjudgmentsmorepalatableinrequirethedirectinflictionofharmtoachievethepersonalmoraldilemmasascompared662LoewensteinRickCohen··Annu. Rev. Psychol. :647-672. Downloaded from Zhejiang University on 08/24/08. For personal use only.
ANRV331-PS59-24ARI5November200720:-basedtheoriesoffairness(.,Indeed,Koenigsetal.(2007)foundthattheDufwenberg&Kirchsteiger2004,Rabinfrequencyofutilitarianjudgmentsdidnotdif-1993),forexample,proposethatpeopleenjoyferbyparticipanttypeinthenonmoralandreciprocatingintentionalkindnesswithkind-impersonalmoralconditions,butthatpartic-ness,-aversionmodels(Bolton&tomakeutilitarianjudgmentsinthepersonalOckenfels2000,Fehr&Schmidt1999),,whetherthatinequal-(2001,2004)andKoenigsetal.(2007),,respondersPeopleseemtoevaluatethesetypesofmoralrejectlowoffersbecausetheyenjoyrecipro-dilemmasdeliberatively(.,whichchoicecatingunkindnesswithunkindness,whereaswillleadtofewerpeopledying)andaffec-thelatteraccountproposesthatresponderstively(whichchoicewouldfeelworse).,whereastheaf-Sanfeyetal.(2003)studiedultimatumfectiveelementdiffers,peoplewithemotiongamebehaviorusingfMRItobetterunder-deficiencies()makedecisionsthataremoreParticipantsintheirstudy,allresponders,-with10differenthumanproposers(thougherationappeartoconflictisthatofthe“ul-offerswereactuallypredeterminedbytheex-timatumgame”().Intheperimenters).Respondersreceivedfive“fair”typicalultimatumgame,a“proposer”offersoffers($5forproposer,$5forrespondent),someportionofanendowmenttoa“,re-der”whocaneitheraccepttheofferorre-spondersreceivedthesameoffer,,thefromacomputer(,bothambiguous,-literallykeeptheresidualmoney).Consistentinterestedrespondersshouldacceptanyposi-withintention-basedtheoriesofreciprocitytiveoffer,self-interestedproposersshouldof-andbehavioralworkbyBlount(1995),,averageofferstypicallyex-fromcomputerproposersthanfromhumanceed30%ofthepie,,activationintheante-20%arefrequentlyrejected(seeCamererriorinsula,anemotionalregionofthecortical2003).Theseresultsaretypicallyobtainedinpainmatrix,wasgreaterinresponsetounfairone-shotgames,meaningresponders’,,participantstypicallyplaythehumanproposerscanbepredictedreliablybygameanonymously,:,•Neuroeconomics663Annu. Rev. Psychol. :647-672. Downloaded from Zhejiang University on 08/24/08. For personal use only.
ANRV331-PS59-24ARI5November200720:9becausetheprospectofinequalitypainsthemmanipulatingactivationintheDLPFC,the(&Murnighan1996).authorswereequippedtomakecausalcon-AsecondfindingfromSanfeyetal.(2003),clusionsaboutitsroleinresponderbehav-DLPFC:andfollow-upworkinspiredbyit,.(2006)-rTMS:repetitiveSpecifically,Sanfeyetal.(2003)foundthatfersthanwereresponderswhohadrTMStotranscranialmagneticstimulationactivationintherightdorsolateralprefrontaltheleftDLFPCorresponderswhohadshamcortex(DLPFC),,goalmaintenance,andover-byperceptionsoffairness:Participantswhoridingprepotentresponses(.,Miller&hadrTMStotherightDLPFCwerenolessCohen2001),,,insulaactivationwasappearstoinfluencewhatoneiswillingtogreaterthanrightDLPFCactivationwhenaccept,.(2003),theseresults(2003)interpretedthispatternasevidencesuggestthattherightDLPFCplaysakeyrolethattheprepotent,emotionalresponsewasinoverridingorweakeningself-interestedim-torejectunfairoffers,andthatregionsas-pulses,,,aswestillhavearela-Knochetal.(2006),withrespecttobothwhereithasitsinthisexperimentplayedultimatumgames,effects(atthetargetedsiteorondistalcompo-andproposerscouldofferanywherebetweennentsofconnectedcircuits),althoughitriodbeforemakingtheirdecisions,somere-isbelievedthatrTMSdisruptsactivationinspondersreceivedrepetitivetranscranialmag-regionsthoughttobeinvolvedinaparticu-neticstimulation(rTMS),amethodthatuseslartask,-beeninvolvedinatargetedtask(,per-spondersreceivedrTMStotherightDLPFC,sonalcommunication).SomeresearchersaresomereceivedrTMStotheleftDLPFC,andothersreceived“sham”(placebo),littletreat-mentdifferencewasactuallyobserved(48%ofunfairofferswereacceptedunderrTMS;42%undershamrTMS).78van’tWoutetal.(2005)wereactuallythefirsttoconductTheKnochetal.(2006),van’tWoutetal.(2005)ioralworkbySkitkaetal.(2002),whoshowedparticipantsavaried,within-subject,(.,sexualcontactversusabloodbothrealrTMSandshamrTMSarelikelytodetectadif-transfusion).Participantswereaskedforeachcasestudyferencebetweentheprocedures,,van’tWoutetal.(2005),,whilehalfmade(2006),,thedesignoftoadvocatesubsidizedtreatmentundercognitiveload,van’tWoutetal.(2005)··Annu. Rev. Psychol. :647-672. Downloaded from Zhejiang University on 08/24/08. For personal use only.
ANRV331-PS59-24ARI5November200720:9alreadycombiningrTMSwithfMRI,andwe2005,waspublishedinapsychologyjour-willundoubtedlycontinuetolearnaboutthisnal),,,oroneInthedomainofsocialpreferences,,hypothesesthatEvans(2008)respec-Forexample,Greeneetal.(2001)andKoenigstivelyreferstoas“parallel-competitive”andetal.(2007)presentevidencesuggesting“default-interventionist.”Economistswhoat-thatpersonalmoraldilemmaselicitprepo-tempttoformallymodeltheinteractionoftentemotionalresponsesthatmustbecogni-multiplesystemsarecertainlyinterestedintivelyoverrideninordertomakejudgmentsthisquestion,.(2003).(2006)bothsuggestthatfairnesspref-Althoughneuroeconomicshasencouragederencesandself-interestoperateviadifferentpositivechangeswithineconomics,reactionssystems,,neuroeconomicshasin-theSanfeyetal.(2003)resultsarecorrela-spiredsomeeconomiststoadoptmorepsy-tional,Knochetal.(2006),,,,onlyonecitesChaiken&Trope’s(1999)well-knownreviewofdual-processre-CONCLUSIONsearch,,somepsychology,largelybecauseofmovementeconomists,-tionofpsychologyintoeconomicsandthenomics(Benhabib&Bisin2005,Bernheimriseofbehavioraleconomics,areevenmore&Rangel2004,Brocas&Carrillo2006,aghastattheinfiltrationofeconomicsbyneu-Fudenberg&Levine2006,Loewenstein&“newphrenology”O’Donoghue2004)havecometoembracea(Harrison2005,)basedontheargu-multiplesystemsperspective,whichhaslongmentthatneuraldatacannotrefuteeconomicbeenpopularamongpsychologists(Chaikenmodels,whichmakepredictionsaboutbehav-&Trope1999,Posner&Snyder1975,iorratherthanunderlyingprocesses(Gul&Schiffrin&Schneider1977).Althoughneu-Pesendorfer2005).Accordingtothisview,roeconomicshasnotyetproducedmanyfind-thefailuretofindneuralcorrelatesof“as-ingsthatdirectlychallengeassumptionsheldif”processesineconomicmodelsisnotawithinpsychology(onlyoneoftheneuroe-failureofthemodels,butratherafailureconomicspapersdiscussedabove,•Neuroeconomics665Annu. Rev. Psychol. :647-672. Downloaded from Zhejiang University on 08/24/08. For personal use only.
ANRV331-PS59-24ARI5November200720:,andpsychologicallyimplausibleas-Lookingahead,,theHowever,totheextentthatcorrectas-technologywillbecomeincreasinglyportablesumptionsaboutunderlyingprocessesmake(.,wearablesensors).Criticsoflaboratorybetter(andfresh)predictions,researchersresearchoftenlamentthealien-like,-insidemulti-tonmagnetsareevenmorevul-deed,asdiscussedabove,,whichreferstothesimultaneousscan-Beyonditspotentialforrefiningeco-ningofseveralinteractingbrains(Montague9nomictheories,).Finally,thecombinationofmul-theneuralprocessesunderlyingbehaviortiplemethods(.,rTMSandfMRI),economistshavetypicallyas-Armedwithrapidlyimprovingtechnologysumedanequivalencebetweenpreferenceandandnewinsightsemergingfromneurosciencewelfare—.,thatsatisfyingpeople’sprefer-andpsychology,,,dual-processmodelsofbehaviorchallengeinpart,,,istheenormousappealofgambling?WhyNeurosciencemethodsalsoholdoutthearedisputes,whetherbetweenindividualsorpromiseofmakingitpossibletomeasurehap-countries,sooftenjointlydestructive?Whatpinessmoredirectly,oratleastmechanismscausestheboomandbustcyclesthataresomoreproximaltotheexperienceofhappi-clearlypresentinfinancialandothermarkets?ness,whichcouldhaveprofoundimplicationsHowdoesadvertisingwork?,itiswidelybe-cardspromotespending?Whydopeoplefaillievedthatitisimpossibletomakeinterper-tosaveforretirement?,economistshavebeenshedlightontheseandmanyotherimpor-veryreluctanttotakeastrongpositiononis-tantphenomena,,inturn,cannothelpbuthave10timesasmuchwealthaspersonB,-Casasetal.(2005)-tioninthetrustee’sheadofcaudateoriginallyrespondedtoever,lackinganyabilitytocomparethetwotherevelationoftheinvestor’sdecisions,butthisactivationindividuals’utilities,suchaninferencewouldeventuallycametoprecedesuchrevelation,indicatingthatbelogicallyunsound;perhapspersonAhasthetrusteehaddevelopedamodeltopredicttheinvestor’.(2006)similarlystudiedare-amuchgreaterappreciationofluxurythanB,peatedtrustgameandfoundthatactivationalongthecin-sothatoverallhappinesswouldactuallybeen-gulatecortexdistinguishesbetweentherevelationofone’shancedbyafurthertransferofwealthfromBowndecisionandtherevelationofthedecisionofone’-666LoewensteinRickCohen··Annu. Rev. Psychol. :647-672. Downloaded from Zhejiang University on 08/24/08. For personal use only.
ANRV331-PS59-24ARI5November200720:-chology,—asimplematterofintegratedandcoherentutilitymaximization—,,-systemsaccount,,viaitsinfluenceoneconomics(.,byinspiringeconomicmodelsincreasinglygroundedinpsychologicalreality),anddirectly,byaddressingdebatesofinterestwithinpsychology(.,whethermultiplesystemsoperatesequentiallyorinparalleltoinfluencebehavior).LITERATURECITEDAblerB,WalterH,:669–::463–96AinslieG, Rev. Psychol. :647-672. Downloaded from Zhejiang University on 08/24/08. For personal use only.
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ANRV331-PS59-24ARI5November200720:’Error:Emotion,Reason,:PutnamDavidsonRJ,JacksonDC,,plasticity,context,andregulation::890–909DeMartinoB,KumaranD,SeymourB,,biases,:684–,cognition,:1191–94DufwenbergM,:268–98DunnBD,DalgleishT,::239–71EisenbergerNI,LiebermanMD,::290–,:643–:709–-processingaccountsofreasoning,judgment,:InpressFehrE,,:817–68FoxCR,:585–603FrederickS,LoewensteinG,O’::351–401FrederickS,NovemskyN,WangJ,DharR,.,SloanSchoolManag.,MIT,Cambridge,MAFudenbergD,:1449–76GenesoveD,::1233–,KableJ,:noworjustassoonaspossible?:142–47GneezyU,:631–45GreenL,FristoeN,:383–89GreeneJD,NystromLE,EngellAD,DarleyJM,:389–400GreeneJD,SommervilleRB,NystromLE,DarleyJM,:2105–8ArguesthatneuralGulF,.,.,,GuthW,SchmittbergerR,:367–88regardingHaririAR,BrownSM,WilliamsonDE,FloryJD,deWitH,:13213–::793–•Neuroeconomics669Annu. Rev. Psychol. :647-672. Downloaded from Zhejiang University on 08/24/08. For personal use only.
ANRV331-PS59-24ARI5November200720:9HeathC,::5–28HillNM,:-mance,,NCharness,PFeltovich,RHoffman,–:,BhattM,AdolphsR,TranelD,:1680–83combinedfMRIKahnI,YeshurunY,RotshteinP,FriedI,Ben-BashatD,:983–94explanationsforKahnemanD,::45–46ResultsimplicatedKahnemanD,KnetschJL,:1325–,::263–91King-CasasB,TomlinD,AnenC,CamererCF,QuartzSR,::78–83KirbyKN,:83–89KnochD,Pascual-LeoneA,MeyerK,TreyerV,:829–32neuroeconomicKnutsonB,FongGW,AdamsCM,VarnerJL,:3683–87evidence,KnochKnutsonB,FongGW,BennettSM,AdamsCM,::263–72manipulateKnutsonB,RickS,WimmerGE,PrelecD,:147–56KoenigsM,YoungL,AdolphsR,TranelD,CushmanF,:908–:287–309activationKu¨hbergerA,:181–:Simon&Schusterspending,::272–92spendingstrictlybyLoewensteinG,O’:.,,::112–26LoewensteinG,ThompsonL,:426–41LoewensteinG,WeberEU,HseeCK,:267–86MaiaTV,::16075–80670LoewensteinRickCohen··Annu. Rev. Psychol. :647-672. Downloaded from Zhejiang University on 08/24/08. For personal use only.
ANRV331-PS59-24ARI5November200720::151–58McClureSM,BernsGS,:339–46McClureSM,EricsonKM,LaibsonDI,LoewensteinG,:5796–804McClureSM,LaibsonDI,LoewensteinG,:503–7limbic/paralimbicMcClureSM,LiJ,TomlinD,CypertKS,MontagueLM,:379–87recruitedforMillarA,-controlandchoiceinhumans::203–18choicesinvolvingMillerEK,:167–202availablerewards,MontaguePR,BernsGS,CohenJD,McClureSM,GiuseppeP,::1159–,DayanP,:1936–47O’DohertyJP,CritchleyH,DeichmannR,:7931–39PettyRE,:,IA:BrownPhelpsEA,O’ConnorKJ,CunninghamWA,FunayamaES,GatenbyJC,:729–38PillutlaMM,,anger,andspite::208–24PosnerMI,:TheLoyolaSymposium,,–,NJ:ErlbaumPrelecD,::4–:323–:1281–302RachlinH,,impulsiveness,,,JElster,–:,LoewensteinG,:171–97RickS,CryderC,:155–61ResultssuggestedSanfeyAG,RillingJK,AronsonJA,NystromLE,:1755–:WileynegativeemotionalresponsefavoringShefrinHM,:609–,:etal.(2006),automaticattending,:127–90questionedthisShivB,LoewensteinG,BecharaA,DamasioH,:435–•Neuroeconomics671Annu. Rev. Psychol. :647-672. Downloaded from Zhejiang University on 08/24/08. For personal use only.
ANRV331-PS59-24ARI5November200720:9SkitkaLJ,MullenE,GriffinT,HutchinsonS,,ideologicalscripts,ormotivatedcorrection?:470–87SolnickJ,KannenbergC,EckermanD,:61–::332–82StevensJR,HallinanEV,:223–:39–60ThalerRH,:392–,:,FoxCR,TrepelC,:515–18aversiontoanTomlinD,KayaliMA,King-CasasB,AnenC,CamererCF,:1047–:317–45dopaminergicTverskyA,:453–58tomultipleTverskyA,::1039–61van’tWoutM,KahnRS,SanfeyAG,:1849–52vonNeumannJ,:WileyWeberB,AholtA,NeuhausC,TrautnerP,ElgerCE,:441–47WickerB,KeysersC,PlaillyJ,RoyetJ-P,GalleseV,::655–64672LoewensteinRickCohen··Annu. Rev. Psychol. :647-672. Downloaded from Zhejiang University on 08/24/08. For personal use only.
AR331-FMARI15November200715:19AnnualReviewofPsychologyContentsVolume59,2008PrefatoryTheEvolutionofaCognitivePsychologist: 29ConsummatoryBehaviorTheBrain,Appetite,andObesityHans-RudolfBerthoudandChristopherMorrison 55SexNeuroendocrineRegulationofFeminineSexualBehavior: 143ScenePerception,EventPerception, 167vAnnu. Rev. Psychol. :647-672. Downloaded from Zhejiang University on 08/24/08. For personal use only.
AR331-FMARI15November200715:19CognitiveProcessesTheMindandBrainofShort-TermMemoryJohnJonides,,DerekEvanNee,,,andKatherineSledgeMoore 193MemoryRelativityofRemembering:,III 225ReasoningandProblemSolvingDual-ProcessingAccountsofReasoning,Judgment, 255ComparativePsychology,Ethology,andEvolutionPuttingtheAltruismBackintoAltruism: 279AnxietyDisordersSocialBondsandPosttraumaticStressDisorderAnthonyCharuvastraandMaryle`neCloitre 301Inference,PersonPerception,AttributionSpontaneousInferences,ImplicitImpressions,,, 329SocialDevelopment,SocialPersonality,SocialMotivation,SocialEmotionMotivesoftheHumanAnimal:Comprehending,Managing, 419viContentsAnnu. Rev. Psychol. :647-672. Downloaded from Zhejiang University on 08/24/08. For personal use only.
AR331-FMARI15November200715:,RobinMorris, 451HealthPromotionandDiseasePreventionHealthPsychology:TheSearchforPathwaysBetweenBehaviorandHealthHowardLeventhal,JohnWeinman,, 477EmotionHumanAbilities:,, ,KenKelley, 537TimelyTopicsAComprehensiveReviewofthePlaceboEffect:,,andFabrizioBenedetti 565Children’ 617NeuroeconomicsGeorgeLoewenstein,ScottRick, 647IndexesCumulativeIndexofContributingAuthors,Volumes49–59 673CumulativeIndexofChapterTitles,Volumes49–59 678ErrataAnonlinelogofcorrectionstoAnnualReviewofPsychologyarticlesmaybefoundat Rev. Psychol. :647-672. Downloaded from Zhejiang University on 08/24/08. For personal use only.
