G.
Price information activated the medial prefrontal cortex, too. This part of the brain is involved in rational calculation. In the experiment its activity seemed to correlate with a volunteers reaction to both product and price, rather than to price alone. Thus, the sense of a good bargain evoked higher activity levels in the medial prefrontal cortex, and this often preceded a decision to buy.
H.
Peoples shopping behaviour therefore seems to have piggy-backed on old neural circuits evolved for anticipation of reward and the avoidance of hazards. What Dr Loewenstein found interesting was the separation of the assessment of the product from the assessment of its price , even though the two are then synthesised in the prefrontal cortex. His hypothesis is that rather than weighing the present good against future alternatives, as orthodox economics suggests happens, people actually balance the immediate pleasure of the prospective possession of a product with the immediate pain of paying for it.
I.
That makes perfect sense as an evolved mechanism for trading. If one useful object is being traded for another , the future utility of what is being given up is embedded in the object being traded.
Emotion is as capable of assigning such a value as reason. Buying on credit, though, may be different. The abstract nature of credit cards, coupled with the deferment of payment that they promise, may modulate the con side of the calculation in favour of the pro。
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