Yale’s Robert Shiller on Neuroeconomics

Shiller was a keynote speaker at the recent Society for Neuroscience meeting in DC. Here he talked about the Neuroeconomics Revolution and a new book by Paul Glimcher, Foundations of Neuroeconomic Analysis.

Money quote:

In particular, Glimcher wants to identify brain structures that process key elements of utility theory when people face uncertainty: “(1) subjective value, (2) probability, (3) the product of subjective value and probability (expected subjective value), and (4) a neuro-computational mechanism that selects the element from the choice set that has the highest ‘expected subjective value’…”