Dopamine, reward prediction error, and economics

Andrew Caplin, Mark Dean

    Research output: Contribution to journalArticle

    Abstract

    The neurotransmitter dopamine has been found to play a crucial role in choice, learning, and belief formation. The best-developed current theory of dopaminergic function is the "reward prediction error" hypothesis-that dopamine encodes the difference between the experienced and predicted "reward" of an event. We provide axiomatic foundations for this hypothesis to help bridge the current conceptual gap between neuroscience and economics. Continued research in this area of overlap between social and natural science promises to overhaul our understanding of how beliefs and preferences are formed, how they evolve, and how they play out in the act of choice.

    Original languageEnglish (US)
    Pages (from-to)663-701
    Number of pages39
    JournalQuarterly Journal of Economics
    Volume123
    Issue number2
    DOIs
    StatePublished - May 2008

    Fingerprint

    Economics
    Dopamine
    Reward
    Prediction error
    Axiomatics
    Neuroscience

    ASJC Scopus subject areas

    • Economics and Econometrics

    Cite this

    Dopamine, reward prediction error, and economics. / Caplin, Andrew; Dean, Mark.

    In: Quarterly Journal of Economics, Vol. 123, No. 2, 05.2008, p. 663-701.

    Research output: Contribution to journalArticle

    Caplin, Andrew ; Dean, Mark. / Dopamine, reward prediction error, and economics. In: Quarterly Journal of Economics. 2008 ; Vol. 123, No. 2. pp. 663-701.
    @article{1f8c73db872a41de9b55808985ee7dd0,
    title = "Dopamine, reward prediction error, and economics",
    abstract = "The neurotransmitter dopamine has been found to play a crucial role in choice, learning, and belief formation. The best-developed current theory of dopaminergic function is the {"}reward prediction error{"} hypothesis-that dopamine encodes the difference between the experienced and predicted {"}reward{"} of an event. We provide axiomatic foundations for this hypothesis to help bridge the current conceptual gap between neuroscience and economics. Continued research in this area of overlap between social and natural science promises to overhaul our understanding of how beliefs and preferences are formed, how they evolve, and how they play out in the act of choice.",
    author = "Andrew Caplin and Mark Dean",
    year = "2008",
    month = "5",
    doi = "10.1162/qjec.2008.123.2.663",
    language = "English (US)",
    volume = "123",
    pages = "663--701",
    journal = "Quarterly Journal of Economics",
    issn = "0033-5533",
    publisher = "Oxford University Press",
    number = "2",

    }

    TY - JOUR

    T1 - Dopamine, reward prediction error, and economics

    AU - Caplin, Andrew

    AU - Dean, Mark

    PY - 2008/5

    Y1 - 2008/5

    N2 - The neurotransmitter dopamine has been found to play a crucial role in choice, learning, and belief formation. The best-developed current theory of dopaminergic function is the "reward prediction error" hypothesis-that dopamine encodes the difference between the experienced and predicted "reward" of an event. We provide axiomatic foundations for this hypothesis to help bridge the current conceptual gap between neuroscience and economics. Continued research in this area of overlap between social and natural science promises to overhaul our understanding of how beliefs and preferences are formed, how they evolve, and how they play out in the act of choice.

    AB - The neurotransmitter dopamine has been found to play a crucial role in choice, learning, and belief formation. The best-developed current theory of dopaminergic function is the "reward prediction error" hypothesis-that dopamine encodes the difference between the experienced and predicted "reward" of an event. We provide axiomatic foundations for this hypothesis to help bridge the current conceptual gap between neuroscience and economics. Continued research in this area of overlap between social and natural science promises to overhaul our understanding of how beliefs and preferences are formed, how they evolve, and how they play out in the act of choice.

    UR - http://www.scopus.com/inward/record.url?scp=42149177173&partnerID=8YFLogxK

    UR - http://www.scopus.com/inward/citedby.url?scp=42149177173&partnerID=8YFLogxK

    U2 - 10.1162/qjec.2008.123.2.663

    DO - 10.1162/qjec.2008.123.2.663

    M3 - Article

    AN - SCOPUS:42149177173

    VL - 123

    SP - 663

    EP - 701

    JO - Quarterly Journal of Economics

    JF - Quarterly Journal of Economics

    SN - 0033-5533

    IS - 2

    ER -