Neural Representation of Costs and Rewards in Decision Making

Decision making is crucial for animal survival because the choices they make based on their current situation could influence their future rewards and could have potential costs. This review summarises recent developments in decision making, discusses how rewards and costs could be encoded in the brain, and how different options are compared such that the most optimal one is chosen. The reward and cost are mainly encoded by the forebrain structures (e.g., anterior cingulate cortex, orbitofrontal cortex), and their value is updated through learning. The recent development on dopamine and the lateral habenula’s role in reporting prediction errors and instructing learning will be emphasised. The importance of dopamine in powering the choice and accounting for the internal state will also be discussed. While the orbitofrontal cortex is the place where the state values are stored, the anterior cingulate cortex is more important when the environment is volatile. All of these structures compare different attributes of the task simultaneously, and the local competition of different neuronal networks allows for the selection of the most appropriate one. Therefore, the total value of the task is not encoded as a scalar quantity in the brain but, instead, as an emergent phenomenon, arising from the computation at different brain regions.