Neuroeconomics

Neuroeconomics

Chapter 2. Experimental Economics and Experimental Game Theory

by Daniel Houser, Kevin McCabe

560 pages· 2013· ISBN 9780128073094
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Neuroeconomics is interested in understanding the interrelationship between computational mechanisms that exist in our evolved brains and computational mechanisms that exist in our constructed institutions. Game theory examines the way in which incentives affect decisions in strategic environments, and as such is an ideal tool for neuroeconomics studies because it links individual decision making to group level outcomes using clearly defined mechanisms. This chapter discusses the way game theory has been used to generate hypotheses in neuroeconomics, and reviews key concepts in the design and analysis of game theory and neuroeconomics experiments used to draw inferences regarding these hypotheses. The chapter concludes by indicating the way results from these experiments may point to a neuroeconomic theory of game playing.

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