Faculty of Economics and Business Administration Publications Database

Neuroeconomic Foundations of Trust and Social Preferences

Fehr, Ernst
Fischbacher, Urs
Volume: 95
Number: 2
Pages: 346 - 351
Month: May
ISSN-Print: 2574-0768
Link External Source: Online Version
Year: 2005
Keywords: Decision making; Socioeconomics; Trust
Abstract: This article examines the neuroeconomic foundations of trust and social preferences. Neuroeconomics merges methods from neuroscience and economics to better understand how the human brain generates decisions in economic and social contexts. At the general level, economic theory has been reluctant to assume anything specific about human preferences, except for the fact that they satisfy the axioms of revealed preference theory. In practice, however, economists often make the strong assumption that individual preferences are exclusively self-regarding. Neuroeconomic studies are likely to provide insights into how the human reward system is linked to decision making in intertemporal choice and risk and how affect and cognition interact to generate decisions.