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Agency relations in the brain: towards an optimal control theory

Author

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  • Orlando Gomes

    (Lisbon School of Accounting and Administration (ISCAL/IPL) & Business Research Unit (UNIDE/IUL))

Abstract

Recent literature on individual decision-making emphasizes the idea that the brain functions as an organization, with the allocation of resources to the development of different cognitive tasks occurring via an agency relation across distinct brain systems. In this note, the mentioned view on the deliberative process of the human mind is extended to a dynamic optimization setting. Meaningful results, concerning the long-term allocation of cognitive resources, are derived.

Suggested Citation

  • Orlando Gomes, 2014. "Agency relations in the brain: towards an optimal control theory," Economics Bulletin, AccessEcon, vol. 34(4), pages 2179-2189.
    • Handle: RePEc:ebl:ecbull:eb-14-00762
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    File URL: http://www.accessecon.com/Pubs/EB/2014/Volume34/EB-14-V34-I4-P199.pdf
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    References listed on IDEAS

    as
    1. Isabelle Brocas & Juan D. Carrillo, 2008. "The Brain as a Hierarchical Organization," American Economic Review, American Economic Association, vol. 98(4), pages 1312-1346, September.
    2. Ricardo Alonso & Isabelle Brocas & Juan D. Carrillo, 2014. "Resource Allocation in the Brain," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 81(2), pages 501-534.
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    Cited by:

    1. Gomes, Orlando, 2015. "Optimal resource allocation in a representative investor economy," Economic Modelling, Elsevier, vol. 50(C), pages 72-84.

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    More about this item

    Keywords

    Brain systems; Cognitive resources; Agency problem; Optimal control; Matching; Saddle-path stability;
    All these keywords.

    JEL classification:

    • C6 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling
    • D8 - Microeconomics - - Information, Knowledge, and Uncertainty

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