The Strategic Brain under Risk in Games and Lotteries with FMRI

While the neuroeconomics of individual decision making has been extensively studied, the neuroeconomics of strategic interaction remains relatively unexplored. I will begin by introducing three classic strategic situations, the Beauty Contest, Stag Hunt, and Entry games, to illustrate the general structure of simple strategic interaction situations, and some basic principles of game theory. The predictions of game theory in these situations are then contrasted with actual behavior, and a descriptive model of higher order reasoning is proposed that can account for observed behavior. We then discuss physiological measurements, obtained through fMRI and eye tracking, alongside behavioral observations, both in these games and in related individual decision problems (“games against nature”). We discuss similarities and differences across individuals playing against nature as opposed to playing against humans in the three mentioned games, and how both behavior and brain data can help to distinguish different types of players. 

Rosemarie would like to invite you to participate in a short online experiment as an appetizer for her talk.

View the rest of the CDS speaker series here.