Working Paper

A Tractable Theory of Choice Based on Cell Behavior

Gonzalo Valdés-Edwards, Salvador Valdés-Prieto
CESifo, Munich, 2013

CESifo Working Paper No. 4424

This paper presents a choice model based on a model for the behavior of brain cells that is based on neurological findings. The paper shows that it is possible to define choice as the result of a series of interconnected cellular processes, instead of framing the problem from the point of view of a single optimizing agent. Many of the desirable attributes of the latter are preserved. Under specific conditions identified here, the aggregate behavior of individual brain cells is similar to what a traditional rational optimizing agent would choose. This model is a first step to understand decision-making in terms of cellular interactions.

CESifo Category
Behavioural Economics
Empirical and Theoretical Methods
Keywords: neuroeconomics, decision-making, economics of neural activity
JEL Classification: D870, D810