Endocrine state is the physical manifestation of subjective beliefs

Abstract

Over the past two decades, economists have begun to incorporate evidence from neuroscience into applied economic research. While some progress has been made, the wider economics profession has yet to embrace the new field of “neuroeconomics.” I argue here that a broad reconciliation of emerging evidence from neuroscience with conventional economic decision theory can be achieved by emphasizing the critical role of neuroendocrine signaling molecules and their receptors. Many of these molecules are amenable to measurement and manipulation in laboratory settings, and most have – when viewed in light of their natural history – a parsimonious interpretation as representing what economists refer to as subjective beliefs.