Neuroeconomics

neuroeconomicsFor those of you that have an interest about how the brain affects our decisions in regard to money, you’ll want to take some time and read a thorough (but rather long) article on neuroeconomics in the New Yorker. A few of the observations from the piece:

On people’s dislike of losing money:

During the past decade or so, economists have devised a series of experiments to demonstrate just how much we dislike losing money. If you present people with an even chance of winning a hundred and fifty dollars or losing a hundred dollars, most refuse the gamble, even though it is to their advantage to accept it: if you multiply the odds of winning–fifty per cent–times a hundred

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One Response to Neuroeconomics

  1. MyFinanceForum.com says:

    Nothing much new here. There was a study conducted on patients diagnosed as psychopathic to the same end. They were given some basic analysis instruction and asked to pick stocks. A similar group of non-psychopaths were given the same instructions. The psychopaths as a whole performed much better than the non-psychopaths. The inference? Non-emotional analysis works better.

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