Dopamine Prediction Errors and the Relativity of Value

Value, or reward prediction, is thought to be generated by neural circuits among the basal ganglia and midbrain dopamine area. Midbrain dopamine neurons calculate the difference between estimated and actual rewards and send the reward prediction error to the basal ganglia, particularly striatum where the value is coded. The value reflects the quality and quantity of reward, the timing of reward delivery, etc. In many cases, however, actually experienced values depend on the context in which rewards are given and cannot be explained merely by physicochemical components of reward.