expected utility. So it calculates expected values, during the decision making process. But of course I presented to you a very abstract situation. There were extra, extra gains when neuroeconomists found the relation between nuclear psycho meds and values. But can we predict for example, purchasing decisions? Can we predict real life decisions of the consumers? [UNKNOWN] showed that actually, we can predict whether the person will buy the product or will not buy the product based on the activity of the nuclear supplement. Once again, activity of the nuclear supplements kills expected values. So in this case, Brian presented his subjects different products. At the beginning of the trial, subject is exposed to the product. Later, subjects can see the price of the product. And at later, she can make a choice. So it would be interesting to make a [UNKNOWN] activity of the nucleus [UNKNOWN]. When subject is exposed to the product at the beginning of the trial. Can we predict the decision of this person to buy the product, based on the activity of the [UNKNOWN] supplement? And indeed we can. So if we will scan the subject. We will find that activity [UNKNOWN] is stronger when person, person purchase the product, so if you see at the bottom of this slide, the activity of [INAUDIBLE] inspires when subject will buy the product vs. When subjects will not buy the product, you will see that whenever a person sees a product, and person will later buy the product, nucleus accondance is more active. So here you can predict the decision of person to buys the actual product based on the activity of the nucleus [UNKNOWN]. It is not very strong prediction, but is higher than chance level. So indeed, we can even predict the real life purchasing decision, based on the activity of [UNKNOWN]. So it looks like this region, actually curbs our expected values. And, this idea, of this new economics metaphor, can be applied even to the real life shopping decision. So we can conclude that nucleus [UNKNOWN] activation correlates, even if it's product preferences. So it actually, activity of this region is different is the situation where we will purchase this product versus the situation where we will not purchase this product. So I would also present you to give seminal. Study conducted by Susan Berk, and she investigated our preferences to different types of products, so of course we are very much affected for example by brands, by different categories of products. We prefer some products are relative to other products. And Susan asked, male subjects to rate different categories of cars. She asked subjects, to rate sport cars, limousines and small cars. So, if we will make a look to the behavioral results, males strongly prefer sport cars relative to limousines and small cars. What would you expect, from the brain activity in this situation? Let's scan the brain of the male, during the presentation of sports cars, limousines, and small cars. What do we see in the Nucleus Acumbens? The activity in the Nucleus Acumbens is proportional to the preferences of males. So, look at it as a reward center. Related to our expected estimations of respectably works is more activated by it's sport cars, than by limousines. I can bear the small cars. So, it looks like even their, effects of marketing, of brands, can be encoded in the activity of nuclear psychology. So, overall this study demonstrates that particular categories of the product, can activate Nucleus Acumbens. And different ways. So our consumer preferences, also encoded in zero activity of Nucleus Acumbens, so, the dominant view on the role of Nucleus Acumbens and the roll of dopamine system, [SOUND] is related to the idea that this region, this system, codes predicted utility. So whenever we make decision, we estimate available options. And this region codes expected utilities for different options. But, real situation is more complicated. The [UNKNOWN] are different to use on the functional role of dopamine system. I will only ment, mention today a very important idea in neuroeconomics. Suggesting that dopamine system and Nucleus Acumbens, is also involved into the learning process. Okay, as I explained during, during the first part of this lecture, dopamine system and Nucleus Acumbens, are involved into the variation stage of decision-making. So, this system is involved into their coding of the expected utilities, expected subjective values related to different options. But, variation system in the brain, perhaps is more complex. Of course we, if we weigh first the available options. But next, we have to have a sign. A final decision, will you, for the selection of the option. So, perhaps there is also another type of values that signal in the brain. Let's call it decision value signal. We also, evaluates the outcome of our decision. So perhaps, the reason subjective value assigned to the outcome of our decision and we later save in our memory values based on learning process. So perhaps, there are also, kind of remembered values in the brain, so basically to make the story a bit more complex, I would mention that, it can be that there are different variation signals in the brain. For example, predicted utility or anticipated utility variation signal. Decision utility signal related to the decision moment. Experienced utility, actually utility or subjective value of the outcome of our decisions. And remembered utility. And sometimes the utility stored in our memory. So, it can be actually that utility is a, general term for various types of utility. And as I illustrated in the previous slides, Dopamine system and Nucleus Acumbens, is very much involved into the predicted utility calculation. And to anticipate it's subjective value of our choice. But as I will show you now in the next slides. The same area, the same system, are involved into remembered utility, in to learning based on our outcomes. So, this Dopamine system includes no closer comments. This Dopamine system, gets a lot of Dopamine and, is involved in to the calculation of values, particularly in to the calculation of expected values, expected utility. But this system, is also involved into learning. And I will illustrate it by very prominent [UNKNOWN] studies. So let's make a look to the reaction of these neurons. To, the certain outcomes, and then the vet conditioning process. So you see here first, that some conditioned stimulus is presented to the animal. And after Pavlovian conditioning, this stimulus actually indicates, the possibility to get the reward a bit later. So you see that these Dopamine neurons, produce bursts of activity. A lot of spikes, when animal sees a picture of conditioned stimulus. So this is a cue indicating reward. And, if you see that these neurons do not react to the reward that is presented later. So, this moment is indicated by the red color here. So these neurons actually do not react to the reward itself. They react to the cue predicting rewards. But let's make a look to the, central part of this graph. If reward is delayed, these neurons start to react to the reward. If the reward is pre, present earlier, these neurons also start to react to this reward. So just make look, it looks like these neurons coat, violations of expectations. And so if reward is presented later, they react. If reward is presented too early, they react. So this neurons encode so called, expectation error. So animal expect to get reward at certain moment, and if it doesn't happen, this neurons signals and expectation error. So this expectational prediction error is the, difference between actually receiving rewards and expected rewards. So this is an important learning signal. So whenever we perform a behavioral act, and we make an error, our neurosystem produces an error signal. And this error signal modifies our expectations. So we learn from this error signal. If we do not experience any error, we don't change our behavior and we continue the same behavioral acts. So expectation errors, prediction errors, are the key learning signals in our brain. They urge us to modify our behavior. To modify our expectations. So, it looks like the Dopamine system as well as the Nucleus Acumbens also emit a learning signal. This is a prediction error signal suggesting that we have to change our predictions, we have to learn. So overall, Nucleus Acumbens is involved both in to the calculation of expected values. For example, when we see a product and it is, this brain area encodes expected values of our decision to purchase this product. And also Nucleus Acumbens is involved in to learning. So if I our expectations, are violated this region produces a prediction error and we learned based on this prediction error and update our expectations. During the next [UNKNOWN]. [SOUND]