Economists and neuroscientists from Caltech have shown that they can use information obtained through fMRI measurements of whole-brain activity to create feasible, efficient, and fair solutions to one of the stickiest dilemmas in economics, the public goods free-rider problem—long thought to be unsolvable. This is one of the first-ever applications of neurotechnology to real-life economic problems, the researchers note.
When it comes to intellectual curiosity and creativity, a market economy in which inventors can buy and sell shares of the key components of their discoveries actually beats out the winner-takes-all world of patent rights as a motivating force, according to a California Institute of Technology (Caltech)-led team of researchers.
In a strategic game, the success of any player depends not just on his or her own actions, but on the behavior of every other player in the game. To be successful, players must not only pay attention to what other players do, but also how they are thinking.
A rose by any other name might smell as sweet, but slap on a hefty price tag, and our opinion of it might go through the roof. At least that's the case with the taste of wine, say scientists from the California Institute of Technology and Stanford University.
It's been called beachfront property. Wireless companies are clamoring for pieces of it. The auction that will parcel it out will be the biggest of the next decade, with reserve prices set at $10 billion.
Do you have second thoughts when ordering a strange-sounding dish at an exotic restaurant? Afraid you'll get fricasseed eye of newt, or something even worse? If you do, it's because certain neurons in the brain are saying that the potential reward for the risk is unknown. These regions of the brain have now been pinpointed by experimental economists at the California Institute of Technology and the University of Iowa College of Medicine.
A new study, on the organization of the wholesale electricity market conducted by California Institute of Technology and Purdue University economists, suggests that a plan being considered by the California Energy Commission (CEC) to require electric utility companies to make public their procurement strategies would result in higher costs for utility customers.