Three Papers in Neuroeconomics

Citation

Bhatt, Meghana A. (2008) Three Papers in Neuroeconomics. Dissertation (Ph.D.), California Institute of Technology. doi:10.7907/X08G-9546. https://resolver.caltech.edu/CaltechETD:etd-05162008-165528

Abstract

I consider the role of automatic psychological and neural processes in different settings. First, how does advertising affect consumer perceptions of a product? I assert that one of the ma jor mechanisms used in marketing is the creation of implicit associations among concepts. A neural network framework is adapted to model how these associations evolve and interact. Use of this formal model allows us to consider some of the indirect effects of advertising, particularly “spillover” and “dilution” effects where the advertisements for one product can help or harm ther perceptions of another. Second, I use fMRI to consider neural activation patterns during strategic thinking. Two studies reveal the possible importance of various neural areas to belief formation, strategic deception, and suspicion. The first study focuses on the neural correlates of belief formation, particularly the difference between equilibrium and out-of-equilibrium decisions. We find both neural activations and behavioral evidence that sub jects have relatively shallow belief processes, often apparently assigning too much agency to themselves, when they are out of equilibrium. The second study focuses on a bargaining interaction where a “buyer” has incentive to deceive a “seller” in order to get a low price for a hypothetical product. We find neural correlates to strategic deception in the dorsal striatum and to suspicion of deception in the ACC.

Thesis Files