neural computation underlying individual and social decision making n.
Download
Skip this Video
Loading SlideShow in 5 Seconds..
Neural Computation Underlying Individual and Social Decision-Making PowerPoint Presentation
Download Presentation
Neural Computation Underlying Individual and Social Decision-Making

Loading in 2 Seconds...

play fullscreen
1 / 49

Neural Computation Underlying Individual and Social Decision-Making - PowerPoint PPT Presentation


  • 66 Views
  • Uploaded on

Neural Computation Underlying Individual and Social Decision-Making. Ming Hsu Haas School of Business University of California, Berkeley. Forbes, 01.September 2002. Neesweek, 09.August 2004. The Big Picture. Economics: formal, axiomatic, global. Human Behavior.

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'Neural Computation Underlying Individual and Social Decision-Making' - xiang


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
neural computation underlying individual and social decision making

Neural Computation Underlying Individual and Social Decision-Making

Ming Hsu

Haas School of Business

University of California, Berkeley

slide2

Forbes, 01.September 2002

Neesweek, 09.August 2004

the big picture
The Big Picture

Economics:

formal, axiomatic, global

Human

Behavior

Psychology: intuitive, empirical, local

Neuroscience:

biological, computational evolutionary

the big picture1
The Big Picture

Economics:

formal, axiomatic, global.

Neuroeconomics

“A mechanistic, behavioral, and mathematical explanation of choice that transcends [each field separately].”

- Glimcher and Rustichini. Science (2004)

Human

Behavior

Psychology: intuitive, empirical,

local.

Neuroscience:

biological, circuitry, evolutionary.

the big picture2
The Big Picture

Economics:

formal, axiomatic, global.

Neuroeconomics

Studies how the brain encodes and computes values that guide behavior.

Allows us to improve models, design markets/AI, create new diagnostic tools

Human

Behavior

Psychology: intuitive, empirical,

local.

Neuroscience:

biological, circuitry, evolutionary.

tools that we used
Tools That We Used

Functional Magnetic

Resonance Imaging (fMRI)

Special Populations

agenda
Agenda
  • Individual Decision-Making
    • Ambiguity aversion
    • fMRI and brain lesion
  • Sociopaths
    • Social preferences
    • Special population
  • Take-aways
more complicated investing
More Complicated: Investing

Stock?

Bond?

Domestic?

Foreign?

Diversify

Think long-term

complicated love marriage
Complicated: Love/Marriage

Whether?

Who?

When?

Where?

37% Rule (Mosteller, 1987)

“Dozen” Rule (Todd, 1997)

slide14

Simple

Complex

Most of life’s decisions

Precise knowledge

of probabilities

Little knowledge

of probabilities

urn i risk

5 Red

5 Blue

Urn I: Risk

Most people indifferent between

betting on red versus blue

urn ii ambiguity

10 - x Red

x Blue

Urn II: Ambiguity

?

?

?

?

?

?

?

?

?

?

Most people indifferent between

betting on red versus blue

choose between urns
Choose Between Urns

Urn I

(Risk)

Urn II

(Ambiguous)

?

?

?

?

?

?

?

?

?

?

Many people prefer betting on Urn I

over Urn II.

where is the paradox
P(RedII)=P(BlueII)

P(RedII) < 0.5

P(BlueII) < 0.5

Where Is The Paradox?

Urn I

(Risk)

Urn II

(Ambiguous)

P(RedI) = P(BlueI)

P(RedI) = 0.5

P(BlueI) = 0.5

?

?

?

?

?

?

?

?

?

?

P(RedI) + P(BlueI) = 1

P(RedII) + P(BlueII) = 1

slide21

Not ambiguity

averse

Simple

Complex

Verizon

Jennifer

or

Deutsche Telekom

or

Angelina

verizon or deutsche telecom
Verizon or Deutsche Telecom?

French & Poterba, American Economic Review (1991).

fmri experiment
fMRI Experiment

Hsu, Bhatt, Adolphs, Tranel, and Camerer. Science. (2005)

fmri experiment1
fMRI Experiment

Hsu, Bhatt, Adolphs, Tranel, and Camerer. Science. (2005)

expected reward region
Expected Reward Region

y - Brain response

A(.) - Ambiguity trials

R(.) - Risk trials

E(.) - Expected value of choices

W(.) - Nuisance parameters

region reacting to uncertainty

Orbitofrontal Cortex

Region Reacting to Uncertainty

y - Brain response

A(.) - Ambiguity trials

R(.) - Risk trials

E(.) - Expected value of choices

W(.) - Nuisance parameters

N.B. This region does not correlate with expected reward.

link between brain and behavior

Stochastic Choice Model

Link Between Brain and Behavior

Brain Imaging Data

Behavioral Choice Data

lesion experiment
Lesion Experiment

100 Cards

50 Red

50 Black

100 Cards

x Red

100-x Black

Choose between gamble worth 100 points OR

Sure payoffs of 15, 25, 30, 40 and 60 points.

estimated risk and ambiguity attitudes

Orbitofrontal Lesion

Control Lesion

Estimated Risk and Ambiguity Attitudes

Orbitofrontal lesion patients more rational!

linking neural behavioral and lesion data

Imputed value

OFC lesion estimate

 = 0.82

Stochastic Choice Model

Linking Neural, Behavioral, and Lesion Data

Brain Imaging Data

Behavioral Choice Data

agenda1
Agenda
  • Individual Decision-Making
    • Ambiguity aversion
    • fMRI and brain lesion
  • Sociopaths
    • Social preferences
    • Special population

How neuroscience

can help economics

How economics can help neuroscience

norman bates
Norman Bates

Psycho, 1960

criminality
Criminality
  • Estimated psychopathy rates among prisoners (various times after 1990)
    • North American: 20.5% (2003 PCL-R manual)
    • Canada: 15 – 25% (federal prison)
    • Iran: 23%
    • UK: 26%
  • Younger beginnings (14 y.o. vs. 28 y.o. )
  • “Instrumental” homicides
measuring psychopathy
MeasuringPsychopathy
  • Psychopathy Checklist-Revised, Screening version (PCL-R SV)
    • 24 point scale: 12 traits scored 0, 1, 2
  • Two factors
    • Interpersonal-affective factor (6 traits)
    • Impulsivity-social deviance (6 traits)
  • Impulsivity-social deviance (Factor 2) is less important for us
    • Except for safety concerns, of course!
interpersonal affective factor
Interpersonal-affective factor
  • Callous and unemotional
  • Superficial charm
  • Grandiosity
  • Lack of empathy and shallow affect
  • Deception and manipulativeness
  • Lack of remorse
  • Not accepting responsibility
characterizing psychopathy using economic games
Characterizing Psychopathy using Economic Games
  • What we’re doing
    • Characterize behavior in these individuals
    • Provide a quantitative measure of (social) behavior
  • Where we want to go
    • Use this measure to search for neural and genetic correlates of psychopathy
    • And other psychiatric and neurological diseases
responder game
Responder Game

Your

payoff

Your

payoff

Other’s

payoff

Other’s

payoff

b costless punishment
B: Costless punishment

Selfish

Generous

b costly reward
B: Costly Reward

Selfish

Generous

power matters
Power matters?

SPs (only): Refuse to let Player B choose

responder game intentions matter power matters
Responder Game: Intentions MatterPower matters

I would not give control over to another person, even for more money.

responder game intentions matter power matters1
Responder Game: Intentions MatterPower matters?

I would not give control over to another person, even for more money.

Seems like A1 is the more “dominant.”

take aways
Take-aways
  • Neuroeconomics is possible
    • Studying neural mechanisms of economic decision-making
    • Nascent field, only about 10 years old
    • Much progress during that time
  • Many open questions, opportunities
    • Moral decision-making
    • Strategic thinking
    • Financial bubbles
    • http://neuroecon.berkeley.edu
acknowledgements
Acknowledgements

Eric Set

Edelyn Verona

Colin Camerer

Ralph Adolphs

Daniel Tranel

Steve Quartz

Peter Bossaerts

Meghana Bhatt

CédricAnen

Shreesh Mysore