Reference Point
reference point
An economic decision-making model of anticipated surprise with dynamic expectation
When making decision under risk, people often exhibit behaviours that classical economic theories cannot explain. Newer models that attempt to account for these ‘irrational’ behaviours often lack neuroscience bases and require the introduction of subjective and problem-specific constructs. Here, we present a decision-making model inspired by the prediction error signals and introspective neuronal replay reported in the brain. In the model, decisions are chosen based on ‘anticipated surprise’, defined by a nonlinear average of the differences between individual outcomes and a reference point. The reference point is determined by the expected value of the possible outcomes, which can dynamically change during the mental simulation of decision-making problems involving sequential stages. Our model elucidates the contribution of each stage to the appeal of available options in a decision-making problem. This allows us to explain several economic paradoxes and gambling behaviours. Our work could help bridge the gap between decision-making theories in economics and neurosciences.
Exploring the neural landscape of imagination and abstract spaces
External cues imbued with significance can enhance the motivational state of an organism, trigger related memories and influence future planning and goal directed behavior. At the same time, internal thought and imaginings can moderate and counteract the impact of external motivational cues. The neural underpinnings of imagination have been largely opaque, due to the inherent inaccessibility of mental actions. The talk will describe studies utilizing imagination and tracking how its neural correlates bidirectionally interact with external motivational cues. Stimulus-response associative learning is only one form of memory organization. A more comprehensive and efficient organizational principal is the cognitive map. In the last part of the talk we will examine this concept in the case of abstract memories and social space. Social encounters provide opportunities to become intimate or estranged from others and to gain or lose power over them. The locations of others on the axes of power and affiliation can serve as reference points for our own position in the social space. Research is beginning to uncover the spatial-like neural representation of these social coordinates. We will discuss recent and growing evidence on utilizing the principals of the cognitive map across multiple domains, providing a systematic way of organizing memories to navigate life.