A neuronal prospect theory model in the brain reward circuitry

A cognitive map for value-guided choice in ventromedial prefrontal cortex

The prefrontal cortex is crucial for economic decision-making and representing the value of options. However, how such representations facilitate flexible decisions remains unknown. We reframe economic decision-making in prefrontal cortex in line with representations of structure within the medial temporal lobe because such cognitive map representations are known to facilitate flexible behaviour. Specifically, we framed choice between different options as a navigation process in value space. Here we show that choices in a 2D value space defined by reward magnitude and probability were represented with a grid-like code, analogous to that found in spatial navigation. The grid-like code was present in ventromedial prefrontal cortex (vmPFC) local field potential theta frequency and the result replicated in an independent dataset. Neurons in vmPFC similarly contained a grid-like code, in addition to encoding the linear value of the chosen option. Importantly, both signals were modulated by theta frequency - occurring at theta troughs but on separate theta cycles. Furthermore, we found sharp-wave ripples - a key neural signature of planning and flexible behaviour - in vmPFC, which were modulated by accuracy and reward. These results demonstrate that multiple cognitive map-like computations are deployed in vmPFC during economic decision-making, suggesting a new framework for the implementation of choice in prefrontal cortex.

Reliable population code for subjective economic value from heterogeneous neuronal signals in primate orbitofrontal cortex

Behavior-related neuronal signals often vary between neurons, which might reflect the unreliability of individual neurons or a truly heterogeneous code. This notion may also apply to economic ("value-based") choices and the underlying reward signals. Reward value is subjective and can be described by a nonlinearly weighted magnitude (utility) and probability. Defining subjective values relies on the continuity axiom, whose testing involves structured variations of a wide range of reward magnitudes and probabilities. Axiom compliance demonstrates understanding of the stimuli and the meaningful character of choices. Using these tests, we investigated the encoding of subjective economic value by neurons in a key economic-decision structure of the monkey brain, the orbitofrontal cortex (OFC). We found that individual neurons carry heterogeneous neuronal value signals that largely fail to match the animal's choices. However, neuronal population signals matched the animal's choices well, suggesting accurate subjective economic value encoding by a heterogeneous population of unreliable neurons.

Research on the game of manufacturing capacity sharing based on prospect theory

In order to investigate the strategy choice of each player in capacity sharing, the article constructs a tripartite game model based on capacity provider-capacity demander-government, introduces the prospect theory and conducts numerical simulation analysis using MATLAB. The results show that capacity sharing in the manufacturing industry is related to three parties: capacity providers, capacity demanders and the government, and their strategies in the game process influence each other; the sensitivity of capacity providers and capacity demanders is higher than that of the government; the increase of risk-return coefficient and loss-avoidance coefficient is conducive to the evolution of subjects to the ideal state.

Dynamic prospect theory: Two core decision theories coexist in the gambling behavior of monkeys and humans

Research in the multidisciplinary field of neuroeconomics has mainly been driven by two influential theories regarding human economic choice: prospect theory, which describes decision-making under risk, and reinforcement learning theory, which describes learning for decision-making. We hypothesized that these two distinct theories guide decision-making in a comprehensive manner. Here, we propose and test a decision-making theory under uncertainty that combines these highly influential theories. Collecting many gambling decisions from laboratory monkeys allowed for reliable testing of our model and revealed a systematic violation of prospect theory's assumption that probability weighting is static. Using the same experimental paradigm in humans, substantial similarities between these species were uncovered by various econometric analyses of our dynamic prospect theory model, which incorporates decision-by-decision learning dynamics of prediction errors into static prospect theory. Our model provides a unified theoretical framework for exploring a neurobiological model of economic choice in human and nonhuman primates.