New Economics Papers
on Neuroeconomics
Issue of 2008‒07‒05
two papers chosen by
Daniela Raeva

  1. Statistical mechanics of neocortical interactions (SMNI): Testing theories with multiple imaging data By L. Ingber
  2. Cognitive Biases and Gaze Direction: An Experimental Study By Alessandro Innocenti; Alessandra Rufa; Jacopo Semmoloni

  1. By: L. Ingber
  2. By: Alessandro Innocenti; Alessandra Rufa; Jacopo Semmoloni
    Abstract: This paper investigates the validity of the model of dual processing by means of eyetracking methods. In this theoretical framework, gaze direction may be a revealing signal of how automatic detection is modified or sustained by controlled search. We performed an experiment by using a stylized decisional framework, i.e. informational cascade, proposed by economists to investigate the rationality of imitative behavior. Our main result is that automatic detection as revealed by gaze direction is driven by mechanisms that are dependent on cognitive biases. In particular, we find significant statistical correlation between subjects’ first fixation and their revealed patterns of choice. Our findings support the hypothesis that the process of automatic detection is not independent on cognitive processes.
    Keywords: informational cascades, overconfidence, eye-tracking, information processing, cognitive biases
    JEL: C91 D82 D83 D87
    Date: 2008–06

This issue is ©2008 by Daniela Raeva. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.