Minor Neuroeconomics: How the Brain Decides
- Broadening minor
- Minor code
- 10 weeks
In this minor, we discuss the history of neuroeconomics and provide a crash-course on the anatomy of the brain, as well as an introduction to neuroscience methods. Subsequently, we will investigate the balance between rationality and emotions, and provide a brief introduction into decision-theory form both a psychologist and an economist perspective. Then, students will be presented with the main theories and neuroscientific findings accounting for how the brain makes (optimal) economic choices. We will focus on the neural mechanisms of the computation of value and preference, and how the brain deals with risk and potential losses. In addition, we will focus on social aspects of decision-making: how group-membership and social interactions shape individuals’ decision-making. Finally, the practical applications of brain research in the fields of economics, marketing, business, and other aspects of society will be discussed.
Neuroeconomics can provide social scientists and future managers with a deeper understanding of how they make their own decisions, and how others decide. How is a “good” or “fair” decision evaluated by the brain? What does our brain perceive as valuable? How do we learn the value of features of our environment? Is it possible to predict the purchasing intentions of a consumer? Are we hard-wired to be risk-averse or risk-taking?
The minor focuses on the interdisciplinary field of neuroeconomics - a new general theory of human behaviour building on psychology, economics and neuroscience. The goal of this minor is to understand the processes that underly decision-making by revealing the neurobiological mechanisms by which these decisions are made. The course focuses on neural mechanisms of choice; neural representation of subjective values; neurobiology of human (ir)rationality; affective mechanisms of decision making; social decision making; and applications of this knowledge in areas such as marketing and management. Students will be provided with the most recent evidence from brain-imaging studies, and you will be introduced to the explanatory models behind them.
The minor introduces an interdisciplinary perspective on economic choice behaviour. We are looking for students who want to understand decision making from a biological perspective; eager to learn more about how neuroscience can teach us about consumer and managerial behaviour. The minor is particularly relevant for students from business administration, economics, psychology and the social sciences in general. However, all students that are interested in the neurobiological underpinning of choice behaviour are encouraged to participate. There are no requirements of specific background knowledge, but a good command of the English language (both spoken and written) is recommended.
All RSM minors have mandatory attendance.
Module 1: “Introduction to Neuroeconomics”
3. Neuroscience Methods
4. Decision-Making: Behavioural Economics
5. Decision-Making: Heuristics and Biases
6. Decision-Making: Game Theory
Module 2: “How the Brain Decides”
7. Value & Reward
8. Risk, Costs & Losses
9. Social Choice
10. Individual Differences in Choice
Module 3: “The Brain in Society”
11. Consumer Neuroscience
14. Moral Decision-Making & Ethics
- During a final class “Symposium” each team presents a research proposal of a Neuroeconomics topic (team assignment)
- Selected chapters from Ward (3rd edition). The Student’s Guide to Cognitive Neuroscience
- Selected chapters from Kahneman (2011) Thinking, Fast and Slow
- Selected chapters from other books & selected journal articles
Method of examination
- Two written tests (Module 1, 2 and Modules 3 & 4)
- Research proposal with final presentation at the end of the course (group assignment)
Composition final grade
- Two written tests (Modules 1, 2 and Modules 3 & 4) – together 60% of final mark
- Research proposal with final presentation at the end of the course – 40% of final mark
- The research proposal and the presentation are group assignments.
- The average grade for written tests needs to be ≥4.5.
- The grade for the Research Proposal assignment needs to be ≥5.5.
- When the grade of the assignments is not sufficient, an addendum can be submitted in order to enhance the grade. In addition, there is a re-sit of the written test.
- The overall grade needs to be ≥5.5 to pass the minor.
There will be feedback on the two assignments. The graded test will be made available to the students for review.