| By: |
Herrmann-Pillath, Carsten |
| Abstract: |
This paper presents an overview of recent research in neuroeconomics, in the
light of the question how these relate to institutional economics. I present a
critique of Glimcher's recent internalist standard model of neuroeconomics and
put forward the claim that only an externalist approach can provide a
consistent framework for relating neuroscience and economics, which implies a
pivotal role for institutions. I discuss the relation between neuroeconomics
and institutional economics from three different perspectives. How does
neuroeconomics improve our knowledge about the relation between behavior and
institutions (rule follwoing)? Can neuroeconomics provide deeper insights into
the effects of institutions on behavior? In which way does neuroeconomics
change the relation between institutional analysis and welfare analysis? In
all these respects, I show that the orginal Hayekian conjectures applies,
namely that the analysis of the human brain contributes substantially to our
understanding of institutions, and that mental phenomena cannot be isolated
from institutional phenomena. -- |
| Keywords: |
neuroeconomics,institutions,multiple selves,identity,rule following,distributed cognition,imitation |
| JEL: |
B41 B52 D02 D87 |
| Date: |
2011 |
| URL: |
http://d.repec.org/n?u=RePEc:zbw:fsfmwp:176&r=neu |