Article thumbnail

Cultural Neuroeconomics of Intertemporal Choice

By Taiki Takahashi, Tarik Hadzibeganovic, Sergio Cannas, Takaki Makino, Hiroki Fukui and Shinobu Kitayama

Abstract

According to theories of cultural neuroscience, Westerners and Easterners may have distinct styles of cognition (e.g., different allocation of attention). Previous research has shown that Westerners and Easterners tend to utilize analytical and holistic cognitive styles, respectively. On the other hand, little is known regarding the cultural differences in neuroeconomic behavior. For instance, economic decisions may be affected by cultural differences in neurocomputational processing underlying attention; however, this area of neuroeconomics has been largely understudied. In the present paper, we attempt to bridge this gap by considering the links between the theory of cultural neuroscience and neuroeconomic theory\ud of the role of attention in intertemporal choice. We predict that (i) Westerners are more impulsive and inconsistent in intertemporal choice in comparison to Easterners, and (ii) Westerners more steeply discount delayed monetary losses than Easterners. We examine these predictions by utilizing a novel temporal discounting model based on Tsallis' statistics (i.e. a q-exponential model). Our preliminary analysis of temporal discounting of gains and losses by Americans and Japanese confirmed the predictions from the cultural neuroeconomic theory. Future study directions, employing computational modeling via neural networks, are briefly outlined and discussed

Topics: Cognitive Psychology, Behavioral Neuroscience, Psychophysics
Year: 2008
OAI identifier: oai:cogprints.org:6158

To submit an update or takedown request for this paper, please submit an Update/Correction/Removal Request.

Suggested articles

Citations

  1. (2006). A note on the relevance of the q-exponential function in the context of intertemporal choices. Physica A: Statistical Mechanics and its Applications,
  2. (2007). Cultural neuroscience: Parsing universality and diversity across levels of analysis.
  3. (2005). Cultural variation in eye movements during scene perception.
  4. (2006). Differential effects of amount on temporal and probability discounting of gains and losses.
  5. (2003). Financial market dynamics. Physica A: Statistical Mechanics and its Applications,
  6. (2007). Frontoparietal cortical activity of methamphetaminedependent and comparison subjects performing a delay discounting task.
  7. (2007). Immediate reward bias in humans: Fronto-parietal networks and a role for the catechol-O-methyltransferase 158(Val/Val) genotype.
  8. (1996). Learning dynamics of simple perceptrons with non-extensive cost functions.
  9. (2005). Loss of self-control in intertemporal choice may be attributable to logarithmic time-perception.
  10. (2006). Neuroeconomics: Cross-currents in research on decision-making.
  11. (2004). Neuroeconomics: The consilience of brain and decision.
  12. (2004). Separate neural systems value immediate and delayed monetary rewards.
  13. (1985). Storing infinite numbers of patterns in a spin-glass model of neural networks.
  14. (2003). Subadditive versus hyperbolic discounting: A comparison of choice and matching.
  15. (2007). The fragility of time: Time-insensitivity and valuation of the near and far future.
  16. (1994). The Langevin and Fokker-Planck equations in the framework of a generalized statistical mechanics.
  17. (2005). The psychology of intertemporal discounting: Why are distant events valued differently from proximal ones?
  18. (2002). Time discounting and time preference: A critical review.
  19. (2007). Time discounting for primary rewards.
  20. (2006). Time-estimation error following Weber-Fechner law may explain subadditive time-discounting.