Orbitofrontal Cortex Encodes Willingness to Pay in Everyday Economic Transactions

An essential component of every economic transaction is a willingness-to-pay (WTP) computation in which buyers calculate the maximum amount of financial resources that they are willing to give up in exchange for the object being sold. Despite its pervasiveness, little is known about how the brain ma...

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Bibliographic Details
Published in:The Journal of neuroscience 2007-09, Vol.27 (37), p.9984-9988
Main Authors: Plassmann, Hilke, O'Doherty, John, Rangel, Antonio
Format: Article
Language:English
Subjects:
Adolescent
Adult
Brain Mapping - methods
Decision Making - physiology
Female
Frontal Lobe - physiology
Humans
Magnetic Resonance Imaging - methods
Male
Middle Aged
Reward
Social Marketing
Time Factors
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Summary:An essential component of every economic transaction is a willingness-to-pay (WTP) computation in which buyers calculate the maximum amount of financial resources that they are willing to give up in exchange for the object being sold. Despite its pervasiveness, little is known about how the brain makes this computation. We investigated the neural basis of the WTP computation by scanning hungry subjects' brains using functional magnetic resonance imaging while they placed real bids for the right to eat different foods. We found that activity in the medial orbitofrontal cortex and in the dorsolateral prefrontal cortex encodes subjects' WTP for the items. Our results support the hypothesis that the medial orbitofrontal cortex encodes the value of goals in decision making.
ISSN:0270-6474
1529-2401
1529-2401
DOI:10.1523/JNEUROSCI.2131-07.2007