A neural autopilot theory of habit: Evidence from consumer purchases and social media use

This article applies a two-process “neural autopilot” model to field data. The autopilot model hypothesizes that habitual choice occurs when the reward from a behavior has low numerical “doubt” (i.e., reward prediction errors are small). The model toggles between repeating a previous choice (habit) when doubt is low and making a goal-directed choice when doubt is high. The model has ingredients established in animal learning and cognitive neuroscience and is simple enough to make nonobvious predictions. In two empirical applications, we fit the model to field data on purchases of canned tuna and posting on the Chinese social media site Weibo. This style of modeling is called “structural” because there is a theoretical model of how different variables influence choices by agents (the “structure”), which tightly restricts how hidden variables lead to observed choices. There is empirical support for the model, more strongly for tuna purchases than for Weibo posting, relative to a baseline “reduced-form” model in which current choices are correlated with past choices without a mechanistic (structural) explanation. An interesting set of predictions can also be derived about how consumers react to different kinds of changes in prices and qualities of goods (this is called “counterfactual analysis”).     

Social neuroeconomics: the neural circuitry of social preferences

Combining the methods of neuroscience and economics generates powerful tools for studying the brain processes behind human social interaction. We argue that hedonic interpretations of theories of social preferences provide a useful framework that generates interesting predictions and helps interpret brain activations involved in altruistic, fair and trusting behaviors. These behaviors are consistently associated with activation in reward-related brain areas, such as the striatum, and with prefrontal activity implicated in cognitive control, the processing of emotions, and integration of benefits and costs, consistent with resolution of a conflict between self-interest and other-regarding motives.     

The Wick in the Candle of Learning: Epistemic Curiosity Activates Reward Circuitry and Enhances Memory

ABSTRACT— Curiosity has been described as a desire for learning and knowledge, but its underlying mechanisms are not well understood. We scanned subjects with functional magnetic resonance imaging while they read trivia questions. The level of curiosity when reading questions was correlated with activity in caudate regions previously suggested to be involved in anticipated reward. This finding led to a behavioral study, which showed that subjects spent more scarce resources (either limited tokens or waiting time) to find out answers when they were more curious. The functional imaging also showed that curiosity increased activity in memory areas when subjects guessed incorrectly, which suggests that curiosity may enhance memory for surprising new information. This prediction about memory enhancement was confirmed in a behavioral study: Higher curiosity in an initial session was correlated with better recall of surprising answers 1 to 2 weeks later.     

Illusory correlations in perceptions and predictions of organizational traits

People often believe in ‘illusory’ correlations between variables that are similar, but not actually correlated. This study suggests that judgments of organizational traits reflect illusory correlations, because subjects' perceptions of correlations between traits, and the predictions of Hage's (1965) ‘axiomatic’ theory, were more highly correlated with independent similarity ratings than with actual correlations between traits. Some methodological reasons why organizational-trait theories might unwittingly produce illusory correlation predictions are discussed, along with possible remedies.     

"Economic man" in cross-cultural perspective: behavioral experiments in 15 small-scale societies

Researchers from across the social sciences have found consistent deviations from the predictions of the canonical model of self-interest in hundreds of experiments from around the world. This research, however, cannot determine whether the uniformity results from universal patterns of human behavior or from the limited cultural variation available among the university students used in virtually all prior experimental work. To address this, we undertook a cross-cultural study of behavior in ultimatum, public goods, and dictator games in a range of small-scale societies exhibiting a wide variety of economic and cultural conditions. We found, first, that the canonical model - based on self-interest - fails in all of the societies studied. Second, our data reveal substantially more behavioral variability across social groups than has been found in previous research. Third, group-level differences in economic organization and the structure of social interactions explain a substantial portion of the behavioral variation across societies: the higher the degree of market integration and the higher the payoffs to cooperation in everyday life, the greater the level of prosociality expressed in experimental games. Fourth, the available individual-level economic and demographic variables do not consistently explain game behavior, either within or across groups. Fifth, in many cases experimental play appears to reflect the common interactional patterns of everyday life.