Weather, in particular the intensity and duration of sunshine (luminance), has been shown to significantly affect market outcomes. Yet, because of the complexity of market interactions we do not know how human behavior is affected by luminance in a way that could inform microeconomic choice...

Abstract Recent advances in neuroscience suggest a utility-like calculation is involved in how the brain makes choices, and that this calculation may use a computation known as divisive normalization. While this tells us how the brain makes choices, it is not immediately evident why the brain...

We present a novel descriptive model of choice that achieves an efficient representation anchored to how the brain represents value. An individual's behavior is fully described by two primitives: an individual's "reward expectation'' and a free parameter we call "predisposition''. We demonstrate...

Prior information is invaluable to decision makers facing noisy evidence, allowing them to increase their chances of choosing the best option. Yet human choice behavior often exhibits base-rate neglect. In order to better understand the mechanisms underlying such sub-optimal behaviors, we...

Prospect theory, widely used descriptively for decisions under both risk and certainty, presumes concave utility over “gains” and convex utility over “losses”; a pattern widely seen in lottery tasks. Although such gain-loss asymmetry is also widely used to model riskless choices, limited...

The central question that has confronted neuroeconomists is whether understanding how a decision maker chooses will help us explain what he will choose. Is there anything to be gained from neural sources of data? Gul and Pesendorfer (2008) have argued to the negative, that economic models are...

In strategic games with a unique mixed strategy equilibrium, players face both an incentive to best-respond to valuations and to act unpredictably. We developed a model of how neural circuitry represents a balance between these two incentives in the course of a decision. Choice is modelled as...