The idea that understanding the brain can inform economics is controversial but not new; for 20 years, behavioral economists have argued that psychology should have a greater influence on the development of economic models. What is new is the use of technology: economists, like other researchers, now have at their disposal powerful tools for observing the brain at work. The most popular tool, functional magnetic resonance imaging (fMRI), has been around since the late 1980s; but only in the past few years has it been used to study decision-making, which is the crux of economic theory.
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