ABSTRACT
We use our brains to think and make decisions, whether consciously or unconsciously, and so, if we understand how the brain works, we should be able to better understand economic behavior. Clearly, things are not quite as simple as this, because the brain is a very complicated thing. Over the last 20 years or so our understanding of the brain, and our ability to measure brain activity, has, however, improved a lot. It has improved so much that neuroscience is now a viable tool for economists to use in interpreting economic behavior. The goal of this chapter is to see what we have learnt so far.
