Neuroeconomics is the multidisciplinary field that intertwines economics, psychology, and neuroscience to develop a unified explanation of human behavior (Glimcher, 2004). The choices that educated people make in everyday life sometimes leave neuroeconomists questioning their decision-making processes. With the help of neuroscience, researchers can determine exactly what is happening in our neural circuitry when confronted with difficult economic decisions, and can more thoroughly explain behavior that was previously inexplicable. Looking at the brain functioning of participants performing tasks like the Ultimatum Game, the endowment effect, and intertemporal choice, the neurobiological mechanisms by which decisions are made can be determined.
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In this classic economic test, two subjects are given a sum of money that must be shared between them however they choose. One subject plays the role of the proposer, and this person is tasked with making an offer for how to split the money, anywhere from keeping all of it to giving it all away. The second subject, given the role of responder, must either accept or reject the offer put forth by the proposer. If the responder accepts the offer, the two subjects split the money as proposed. If the responder rejects the offer, both players get …show more content…
Areas that showed greater activation during the presentation of unfair offers were dorsolateral prefrontal cortex (DLPFC), bilateral anterior insula, and anterior cingulate cortex (ACC). These areas were also more strongly activated during unfair human offers than during unfair computer or control offers (Sanfey, 2003). The activation of bilateral anterior insula is noteworthy, as this area is related to negative emotional states such as pain and distress (Derbyshire, 2004). This area is more strongly activated in response to offers that participants later reject, and the degree of activation can actually predict whether the participant would accept or reject the offer (Sanfey, 2003). The DLPFC, on the other hand, is related to goal maintenance and executive control (Miller & Cohen, 2001), and the activation of this area during unfair offers suggests that higher cognitive demand is required to overcome the more strongly emotional desire to reject the offer. The ACC, an area dedicated to handling cognitive conflict, is most likely in charge of balancing the emotional and cognitive responses coming from the anterior insula and DLPFC, respectively.
The ultimatum game brings into question the traditional economic theory of rational choice, introducing a new variable that must be considered during economic decision-making tasks: context. Sanfey’s experiment highlights the interaction between the emotional goal of combatting unfairness
In this classic economic test, two subjects are given a sum of money that must be shared between them however they choose. One subject plays the role of the proposer, and this person is tasked with making an offer for how to split the money, anywhere from keeping all of it to giving it all away. The second subject, given the role of responder, must either accept or reject the offer put forth by the proposer. If the responder accepts the offer, the two subjects split the money as proposed. If the responder rejects the offer, both players get …show more content…
Areas that showed greater activation during the presentation of unfair offers were dorsolateral prefrontal cortex (DLPFC), bilateral anterior insula, and anterior cingulate cortex (ACC). These areas were also more strongly activated during unfair human offers than during unfair computer or control offers (Sanfey, 2003). The activation of bilateral anterior insula is noteworthy, as this area is related to negative emotional states such as pain and distress (Derbyshire, 2004). This area is more strongly activated in response to offers that participants later reject, and the degree of activation can actually predict whether the participant would accept or reject the offer (Sanfey, 2003). The DLPFC, on the other hand, is related to goal maintenance and executive control (Miller & Cohen, 2001), and the activation of this area during unfair offers suggests that higher cognitive demand is required to overcome the more strongly emotional desire to reject the offer. The ACC, an area dedicated to handling cognitive conflict, is most likely in charge of balancing the emotional and cognitive responses coming from the anterior insula and DLPFC, respectively.
The ultimatum game brings into question the traditional economic theory of rational choice, introducing a new variable that must be considered during economic decision-making tasks: context. Sanfey’s experiment highlights the interaction between the emotional goal of combatting unfairness