MARKET 1 Lecture Notes - Lecture 9: Diencephalon, Brainstem, Ventromedial Prefrontal Cortex
Document Summary
The somatic marker hypothesis: a neural theory of economic decision. Modern economic theory assumes that human decision making involves rational bayesian maximisation of expected utility as if humans were equipped with unlimited knowledge, time and information-processing power. Past 15 years, studies over several patients with lesions of the ventromedial prefrontal (vm) cortew who showed impairments in judgment and decision-making in real-life settings, in spite of maintaining a normal intellect. Case of phineas gage -> frontal lobes are linked to judgment, decision-making, social conduct and personality. Bilateral damage to the vm prefrontal cortex -> severe impairments in personal and social decision- making. Choices no longer advantageous, often against their best interests and remarkably different from the kinds of choices they were known to make before. Unable to learn from previous mistakes as reflected by repeated engagement in decisions that lead to negative consequences. Normal intellect but compromised ability to express emotion and experience feelings in appropriate situations (standard neuropsychological tests)
