Overview of Neuroeconomics

An Overview of Neuroeconomics Dante Pirouz Doctoral Candidate Researcher Paul Merage School of Business February 7, 2008 Trial 1 T 0 0.5 1 1.5 2 2.5 3 3.5

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What is Neuroeconomics? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Cognitive Neuroscience ,[object Object],[object Object]

Why Combine Consumer Behavior and Neuroscience? ,[object Object],[object Object],[object Object],[object Object],[object Object]

Neural Response to Advertising ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Main Brain Regions Occipital Lobe Frontal Lobe Parietal Lobe Temporal Lobe

Pons Spinal Cord Cerebellum Amygdala Thalamus Hypothalamus Hippocampal Formation Corpus Callosum Cingulate Gyrus Striatum Limbic System

Neuroscience Methods ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Brain Imaging Techniques Methodology What is imaged? How? Electroencephalography (EEG) Changes in electrical brain current Electrodes placed on scalp measure electrical brain waves Computed (Axial) Tomography Scan (CT or CAT) X-ray images of the brain Multiple images (tomograms) are taken by rotating X-ray tubes. Does not image function Positron Emission Tomography (PET) Emissions from radioactive chemicals in the blood Radioactive isotopes injected into the blood are detected like X-rays Magnetoencephalography (MEG) Changes in electrical brain current Similar to EEG but magnetic brain waves are measured instead of electrical waves Functional Magnetic Resonance Imaging (fMRI) Blood flow; oxyhemoglobin to deoxyhemoglobin ratio Relies on magnetic properties of blood. Shows brain function spatially and temporally

Functional Magnetic Resonance Imaging (fMRI) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Source: UC Irvine Center for Functional Onco-Imaging

Why is fMRI so exciting? ,[object Object],[object Object],[object Object],[object Object],Pirouz & Park, 2005, Harvard Medical School/Massachusetts General Hospital Fellowship Program in fMRI

Caveats of fMRI ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

The Dark Side of Product Attachment: The Neural Response to Addictive Product Cues Dante Pirouz, Doctoral Student Dr. Steve Cramer, Assistant Professor, Neuroanatomy/Neuroscience Connie Pechmann, Professor, Marketing Paul Rodriguez, Research Specialist, Cognitive Science University of California, Irvine Funded by a clinical research grant from UCI’s General Clinical Research Center (GCRC)

Background ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Method ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Cigarette Ads ,[object Object],[object Object],[object Object],Source: Pollay Tobacco Ad Collection

Neutral Ads ,[object Object],[object Object],[object Object]

Neutral Images ,[object Object],[object Object]

Neural Predictors of Purchases ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Experimental Design ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Results ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Results ,[object Object],[object Object],[object Object],[object Object]

Investment Behavior and the Negative Side of Emotion ,[object Object],[object Object],[object Object],[object Object]

Investment Game ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Results ,[object Object],[object Object]

The Neurobiology of Trust ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Trust Game ,[object Object],[object Object],[object Object],[object Object],[object Object],A: Investor B: Trustee $0 $10 $15 $15 $0 $30

Results ,[object Object],[object Object],[object Object]

Marketing Actions Can Modulate Neural Representations of Experienced Pleasantness ,[object Object],[object Object],[object Object]

Criticisms ,[object Object],[object Object],[object Object],[object Object],[object Object]

Recommended Reading ,[object Object],[object Object],[object Object],[object Object],[object Object]

Thanks! [email_address] http://www.merage.uci.edu/~dpirouz04/

Overview of Neuroeconomics

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