Post on 21-Oct-2014
description
Experience, Price, and the Brain: What is an Ocean View worth?
Scott HuettelDuke University
Why do we value something?
How do we trade off between different things
we value?@ BLUEMiND, OBX Scott Huettel, Duke University@ BLUEMiND, OBX Scott Huettel, Duke University
@ BLUEMiND, OBX Scott Huettel, Duke University@ BLUEMiND, OBX Scott Huettel, Duke University
An easy sort of value judgment (consumer goods)…
or
@ BLUEMiND, OBX Scott Huettel, Duke University@ BLUEMiND, OBX Scott Huettel, Duke University
… a harder sort of value judgment (aesthetic experiences)…
or
@ BLUEMiND, OBX Scott Huettel, Duke University@ BLUEMiND, OBX Scott Huettel, Duke University
… the hardest sort of value judgment (trading experience against goods).
or
Why do we value something?
How do we trade off between different things
we value?@ BLUEMiND, OBX Scott Huettel, Duke University@ BLUEMiND, OBX Scott Huettel, Duke University
Decisions involving tradeoffs between goods (e.g., money) and experiences
(e.g., a view) are difficult because they involve different value computations in
the brain.
Principle 1: We value information.
@ BLUEMiND, OBX Scott Huettel, Duke University@ BLUEMiND, OBX Scott Huettel, Duke University
@ BLUEMiND, OBX Scott Huettel, Duke University@ BLUEMiND, OBX Scott Huettel, Duke University
@ BLUEMiND, OBX Scott Huettel, Duke University@ BLUEMiND, OBX Scott Huettel, Duke University
See Biederman & Vessel (2006, American Scientist)
We prefer images with intermediate complexity…
… recognizable elements…
… and positive associations.
Principle 2: We value memories.
@ BLUEMiND, OBX Scott Huettel, Duke University@ BLUEMiND, OBX Scott Huettel, Duke University
@ BLUEMiND, OBX Scott Huettel, Duke University@ BLUEMiND, OBX Scott Huettel, Duke University
Rostral Prefrontal Cortex
(prospection, planning)
Ventral Striatum (reward
evaluation)
FMRI activation to memory retrieval
(without incentives)
Han et al. (2010, Journal of Neuroscience)
Principle 3: Goods can (and should) be traded for experiences.
@ BLUEMiND, OBX Scott Huettel, Duke University@ BLUEMiND, OBX Scott Huettel, Duke University
Trading Behavior
Bra
in
Resp
on
se
@ BLUEMiND, OBX Scott Huettel, Duke University@ BLUEMiND, OBX Scott Huettel, Duke University
vmPFC
Smith et al. (2010, Journal of Neuroscience)
@ BLUEMiND, OBX Scott Huettel, Duke University@ BLUEMiND, OBX Scott Huettel, Duke University
Rela
tive
Hap
pine
ss
Van Boven and Gilovich (2003)
Carter and Gilovich (2010)
Summary
@ BLUEMiND, OBX Scott Huettel, Duke University@ BLUEMiND, OBX Scott Huettel, Duke University
• Experiences carry value…• … by containing information. • … by generating memories.
• Experiences can be obtained/traded for goods…• … through a “common currency” for value.• … with positive long-term consequences.