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Course Description:

Economics, psychology, and neuroscience are converging today into a unified discipline of Neuroeconomics with the ultimate aim of providing a single, general theory of human behaviour.

Neuroeconomics can provide economists and social scientists with a deeper understanding of how they make their own decisions, and how others decide. Are we hard-wired to be risk-adverse or risk-takers? How is a “fair decision” evaluated by the brain? Is it possible today to predict the purchasing intentions of a consumer? Can we modulate economic behaviour affecting the brain?

Neuroscience allied to psychology and economics have powerful models and evidence to explain why we make a decision… and whether it is rational or not. Decision-making in financial markets, trust and cooperation in teams, consumer persuasion, will be central issues in this course in neuroeconomics. You will be provided with the most recent evidence from brain-imaging techniques (PET, fMRI and TMS), and you will be introduced to the explanatory models behind them.

The course will start by discussing the foundations of neuroeconomics and the neuroanatomy of the brain (Module I: “How the brain works”).

Module II (“How the brain decides”) then focuses on the core building block of neuroeconomics: decision theory. In a simple way, you will be presented with the main theories accounting for how individuals decide, supported by key empirical studies.

The next module will study the balance between rationality and emotions (Module III: “How the brain feels”): how our emotions interfere with our so-called rational judgments.

Module IV (“Society of brains”) focuses on society: how groups and the social environment interact with individual decision-making. This module will have strong implications for marketing, public policy and public education.

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