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date: 21 October 2021

Abstract and Keywords

This chapter describes the major tools, methods, and areas of study in neuroeconomics, a young but flourishing multidisciplinary field of economics that investigates the genetic, structural, and functional mechanisms underlying behavioral differences that lead to heterogeneity in economic choices. The main objective of neuroeconomics is to better understand how neural activity results in an emergent cognitive capacity for economic behavior and to identify the biological foundation of human social and economic decision making. The chapter first considers the methods used in the field to study how the human brain functions to influence economic choices, followed by a discussion of neuroeconomics tools such as functional magnetic resonance imaging, electroencephalography, transcranial magnetic stimulation, and chemical manipulations. It then turns to the application of neuroeconomics in the study of social exchange in environments involving trust and betrayal.

Keywords: neuroeconomics, economic choices, economic behavior, social decision making, economic decision making, brain, functional magnetic resonance imaging, social exchange, trust, betrayal

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