Presentation at IAREP/SABE, Rome 2008

A Neuroeconomic Model

Torben LarsenCenter for Applied Health Research

SOUTHERN DANISH UNIVERSITY

tla@cast.sdu.dk

Torben Larsen: NE-model <tla@cast.sdu.dk>

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Neurocybernetic FrameworkPhylo-genesis

Triune Brain(McLean 1972)

Working Br.(Luria 1973)

Neurocy-

bernetics

L4 Neocortex Power of Concentration

Executive

Integrator

L3 Perception &

Memory

Cognition Server

L2 Mammalian

Complex

Reticular

Ascending

Activation

System

Emotional

Server

L1 Reptile complex

Instinctual

Client

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Limbic system (L2) and Neocortex (L3-4)

L2: Papez circuit = Hippocampus * Hypothalamus * Thalamus * Cingulate

L4L3

L2

L1

4

Neurocybernetic key trials since 2000L2/L: Eggers AE (2007): Redrawing Papez' circuit: a theory about how acute stress becomes chronic and causes disease. Med Hypotheses, 69(4):852-7. Kumaran D, Maguire EA. (2007): Match–mismatch processes underlie human Hippocampal responses to associative

novelty. Journal of Neuroscience, 27(32):8517– 8524. Mohanty A, Engels AS et al (2007): Differential engagement of anterior cingulate cortex subdivisions for cognitive and

emotional function. Psychophysiology, 44: 343-351. Naqvi N, Rudrauf D et al (2007): Damage to the Insula disrupts addiction to cigarette smoking. Sci, 315(5811):531-34* Singer T (2006): The neuronal basis and ontogeny of empathy and mind reading: Review … Neurosci Beh Rev, 30, 855-

63. Takahashi T, Ikeda K et al (2004): Social stress-induced cortisol elevation acutely impairs social memory in humans .

Neuroscience Letters, 363:125-30.L3/R:Hein G, Knight RT (2008): Superior Temporal Sulcus-It's My Area: Or Is It? J Cogn Neurosci. May 5.Epub ahead of print.L3/I: Cantlon J, Brannon E et al (2006). Func. imaging of numerical process in adults and 4-y-old children. PLoS Biol, 4 (5). Kounios J, Frymiare JL et al (2006): The prepared mind. Neural activity prior to problem presentation predicts

subsequent solution by sudden insight. Psychological Science, 17(10).*L4/U:Bechara A, Damasio H&AR (2000): Emotion, decision-making and the orbitofrontal cortex. Cereb Cort, 10:295-307 Beer JS, Knight RT, D’Esposito M (2007): Controlling the integration of emotion and cognition. Psych Sci, 17(5):448-53.L4/A: Robertson EM, Tormos JM et al (2007): The Role of the Dorsolateral Prefrontal Cortex during Sequence Learning is

Specific for Spatial Information. Cerebral Cortex, 11:628–35.META-functions: Cory GA and Gardner R Jr (2002): The evolutionary neuroethology of Paul McLean. Convergences and frontiers . Praeger

Publishers, USA. RIA: Baddeley AD, Wilson BA (2002): Prose recall and amnesia: implic. for the structure of VM. Neuropsych, 40:1737-1743.LU: Muzur A, Pace-Schott EF et al (2002): Review. The prefrontal cortex in sleep. TRENDS in Cogn Sci, 6(11).*CONC:Schultz W (2006): Behavioral theories and the neurophysiology of reward. Annual Review of Psychology, 57:87-115.* Oya H, Adolphs R, Kawasaki H et al (2005): Electrophysiological correlates of reward prediction error recorded in the

human prefrontal cortex. PNAS, 102(23):8351-8356.* Sanfey AG, Rilling JK (2003): The neural basis of economic decision-making in the ultimatum game. Sci,030:1755-58.* Takahashi T, Oono H et al (2007): Comparison of probabilistic models in humans. Behav Brain Functions, 3(20). Yeung N, A. G. Sanfey (2004): Independent coding of reward magnitude and valence in the human brain. Journal of Neuroscience, 24(28):6258-64.* Sanfey AG (2007): Social decision-making: insights from game theory and neuroscience. Sci, 318:598-602. ------------------------------------------------------------------------------------------------- Neuroeconomic Applications ---------------------------------------------------------------------------------------------------

HRM: Larsen T, Olsen TS, Sorensen J (2006): Early home-supported discharge: a health technology assessment. International Journ of Technology Assessm in Healthcare, 22(3):313-320. -> www.integratedhomecare.eu HRD: Arias AJ, Steinberg K etal (2006): Systematic review of the efficacy of meditation techniques as treatments for medical illness. Journal of Alternative and Complementary Medicine, 12(8): 817–832.

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List of neurocybernetic variablesL Init. Function Location (L1-4) Indicator

L1

RAS

Am

VT

Reticular activation system

Amygdala fear centre

Root of reward circuit

Brain Stem

Basal ganglia / Striatum

Ventral Tegmentum/ Striatum

Electroderm SR

BOLD

BOLD

L2

M*

H*

Pc*

Is

D

L

Episodic memory

Homeostasis centre

Primary consciousness ctr.

Reward expectancy server

Mesolimbic dopamine circuit

Limbic (emotion) system

Hippocampus

Hypothalamus/Thalamus

Anterior cingulate cortex

Insula

Diencephalon+Forebrain

All specified centres at L2

L/R BOLD

α-waves (EEG)

BOLD

BOLD

1/Cortisol

Is/Am BOLD

L3

VAC

R

I

Visual association centre

Semantic recollection

Intraparietal sketchpad

Occipital lobe

Superior temporal sulcus

Intraparietal sulcus

BOLD

BOLD

BOLD

L4

A

U

CONC

Sequential analysis ctr.

Utility ranking centre

Power of concentration

Dorsolateral prefrontal cortex

Orbitofrontal cortex (OFC)

Ventromedial prefront. cortex

Lateral BOLD

BOLD

Prediction error

Note: * – Centres in Papez circuit (1937)

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Neuroeconomic

Model (NeM):

CONC:=Min[LU-RIA]

Decision making as minimiz. prediction error

Schultz 2006

LU dominates during dreaming

Muzur et al 2002

RIA dominates during sequential memory processing Robertson et al 2001

The Ultimatum Game as prototype of economic economic manman activates both LU and RIASanfey et al 2003

→Decision-making as whole-brain proces!!!

I

R

A

U

CONC

RAS

RAS=Reticular (Reptile) ascending activation system (Client); L=Limbic (Mammallian) system; U=Utility centre in Orbitofrontal Cortex; A=Logic in dorsolateral PFC; I=Intraparietal Mathematical schetchpad; R=Linguistic recollection in Superior Temporal Sulcus; Bulb: Visual Association Centre in Parietal Cortex; Meta-functions: LU: Emotional Intelligence and RIA: Logo-Mathematico Intelligence serving CONC (Power of Concentration in ventromedial PFC)

L

Emotions Associations Mismatch

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NeM-application 0:

General Behavioural Model

Neocortex (L3-4)

RAS (L1)

Limbic system

(L2)

Hierarchy of needs: From simplesimple to com-com-

Maslow, 1969 posite posite rationality

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NeM-application 1:

Human Relations Management (HRM)

• Integrated Home Care (IHC) across settings as associated with reduced blood pressure compared to hospital rehabilitation, only, is a dominant intervention to chronic conditions as stroke, heart failure and COPD

→IHC might be characterized as the Hawthorne-effect in health care

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NeM-application 2:

Integrative Human Ressource Development (IHRD)

Objective Indicator Method

Empathy

(L2)

Capacity of association in dialogue

Meditation, Yoga, arts and social activity

Pragmatism

(L3)

Capacity in mathematical statistics

EDU in simple and complex positivism

Endurance

(L4)

Capacity to stabilize stressors

Fitness by exercize

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Conclusion

• Neuroeconomic applications:– Marketing analysis– Work group management– Integrative Human

Ressource Development

→Neuroeconomics should be part of economic education

Objective Indicator Method

Empathy

(L2)

Capacity of association in dialogue

Meditation, Yoga, arts and social activity

Pragmatism

(L3)

Capacity in mathematical statistics

EDU in simple and complex positivism

Endurance

(L4)

Capacity to stabilize stressors

Fitness by exercize