Location: 368A Heady Hall
Description: John Crespi (Kansas State University)
"How Quickly Would You Choose Milk from a Cloned Cow? Neural Activations, Information Retrieval, an Discount Rates"
Abstract: Brain imaging data gathered from functional magnetic resonance imaging (fMRI) scans in economics is often ad hoc, with little guidance from economic theory. Using an economic product differentiation model with temporal hazard rates and discounting, the authors incorporate percent signal change contrasts from blood-oxygenation-level-dependent (BOLD) scans. Using BOLD signals from brain regions implicated in economic valuation, the research directly tests the hypotheses of an economic theory. The empirical test uses a study of consumer decision time regarding milk products. Both simple correlations as well as regression analyses support the hypothesized relationships providing evidence of the interrelatedness of brain activation and theories of differentiation.