סמינר בשיווק

VERED KURTZ,Coller School of Management, Tel-Aviv University

Revealed preference theory (RPT) provides analytic tools to test the inconsistency level of a decision maker. Here, we use RPT and neuroimaging techniques to trace the neural mechanisms that generate inconsistent behavior. To do so, we developed a novel index that measures a trial-level inconsistency score, contrary to the inconsistency indices currently used, that measure an aggregate-level of inconsistency. We use the trial-level index to measure the severity of each violation of RPT, and directly trace its neural correlates.33 subjects conducted a modification of the task presented by Choi et al., (2007) inside a functional Magnetic Resonance Imaging scanner (fMRI). We found high heterogeneity in inconsistency levels across subjects, and between trials within a subject. Neuroimaging data revealed that the BOLD signal in the medial pre-frontal cortex (mPFC) and anterior cingulate cortex (ACC) was correlated with our novel index. The same regions were also correlated with subjective value, suggesting the deviation from rational choice occurs in the same regions responsible for value modulation. We confirm our findings with a series of robustness checks