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- Creators: Schlee, Edward
Description
Temporal discounting refers to our tendency to discount the value of future rewards. At the extreme, temporal discounting can give rise to detrimental myopic decision-making. Most studies examining the neural basis of temporal discounting in people have been performed using functional Magnetic Resonance Imaging (fMRI). However, fMRI has relatively poor temporal resolution compared with the speed at which people make choices, so understanding choice dynamics using fMRI is difficult. We address the issue utilizing electroencephalography (EEG) to study cortical processes related to temporal discounting. The fMRI literature has found that a network of fronto-parietal brain regions plays an important role during the decision-making process. We aim to explore activity in these regions during the decision process and determine how cortical activity relates to choice parameters. Based on prior fMRI studies, we hypothesized that dorsomedial prefrontal cortex (dmPFC) may act as a regulator of dorsal lateral prefrontal cortex (dlPFC) and there will be an increase in dlPFC activity for more difficult decisions. We also hypothesized that neural activity may be directly related to the temporal discount rate we estimate behaviorally. We utilized regression analysis to determine the relationship. The results found supported our hypotheses. This study may open the door to a better understanding of the dynamic of brain regions while performing a temporal discounting task.
ContributorsTanwisuth, Koranis (Author) / McClure, Samuel (Thesis director) / Brewer, Gene (Committee member) / School of Historical, Philosophical and Religious Studies (Contributor) / School of Mathematical and Statistical Sciences (Contributor) / Department of Psychology (Contributor) / Barrett, The Honors College (Contributor)
Created2017-05
Description
I began this thesis because I was confused about economics. I wondered why there were so many different models. I didn't understand how they fit together. I was also confused by the assumptions being made. For instance, the assumption that humans are rational utility-maximizers did not seem to agree with my own experiences. With my director Dr. Edward Schlee's help, my thesis has become an inquiry into the state of economic methodology, both in theory and in practice. The questions that drive this paper are: How do economists choose between theories? What is the purpose of economic theory? What is the role of empirical data in assessing models? What role do assumptions play in theory evaluation, and should assumptions make sense? Part I: Methodology is the theoretical portion of the paper. I summarize the essential arguments of the two main schools of thought in economic methodology, and argue for an updated methodology. In Part II: A case study: The expected utility hypothesis, I examine methodology in practice by assessing a handful of studies that seek to test the expected utility hypothesis. Interestingly, I find that there is a different between what economists say they are doing, and what they actually seem to be doing. Throughout this paper, I restrict my analysis to microeconomic theory, simply because this is the area with which I am more familiar. I intend this paper to be a guide for my fellow students and rising economists, as well as for already practicing economists. I hope it helps the reader better understand methodology and improve her own practice.
ContributorsKang, Dominique (Author) / Schlee, Edward (Thesis director) / Schoellman, Todd (Committee member) / Boerner, Rochus (Committee member) / Barrett, The Honors College (Contributor)
Created2013-05
Description
Prior research on consumer behavior in health insurance markets has primarily focused on individual decision making while relying on strong parametric assumptions about preferences. The aim of this dissertation is to improve the traditional approach in both dimensions. First, I consider the importance of joint decision-making in individual insurance markets by studying how married couples coordinate their choices in these markets. Second, I investigate the robustness of prior studies by developing a non-parametric method to assess decision-making in health insurance markets. To study how married couples make choices in individual insurance markets I estimate a stochastic choice model of household demand that takes into account spouses' risk aversion, spouses' expenditure risk, risk sharing, and switching costs. I use the model estimates to study how coordination within couples and interaction between couples and singles affects the way that markets adjust to policies designed to nudge consumers toward choosing higher value plans, particularly with respect to adverse selection.
Finally, to assess consumer decision-making beyond standard parametric assumptions about preferences, I use second--order stochastic dominance rankings. Moreover, I show how to extend this method to construct bounds on the welfare implications of choosing dominated plans.
Finally, to assess consumer decision-making beyond standard parametric assumptions about preferences, I use second--order stochastic dominance rankings. Moreover, I show how to extend this method to construct bounds on the welfare implications of choosing dominated plans.
ContributorsSanguinetti, Tomas (Author) / Kuminoff, Nicolai V. (Thesis advisor) / Schlee, Edward (Committee member) / Ketcham, Jonathan (Committee member) / Silverman, Daniel (Committee member) / Arizona State University (Publisher)
Created2020