Receive some fun, visual demonstrations of how neuroeconomics can help you better understand how you think about and use money.
- Until very recently,…we had no way of knowing what happens in the brain…when we make financial decisions.…When human beings failed spectacularly and consistently…to behave in ways that economists deemed…were optimal, rational, and efficient,…new fields of study emerged to investigate this gap.…Neuroeconomics bridges the disciplines…of psychology, economics, and neuroscience.…Researchers use tools like mood-altering drugs,…tests for hormone levels, and fMRI imaging…to give us a peek inside the black box…that is our brain on money.…
How can we use these findings…to help us behave more optimally?…Let's look at two ways…in which we're predictably irrational:…loss aversion and temporal discounting.…Human beings are wired to avoid loss, full stop.…Studies show that skin conductance,…pupil dilation, and heart rate are all higher…when we stand to lose a particular amount of money…than when we stand to gain the exact same amount.…Some estimates show our reactivity level for a loss…is more than twice that for a gain.…So while gains are intense,…
Skill Level Intermediate
Personal Finance Tips and Trickswith Jane Barratt2h 58m Appropriate for all
Financial Wellness for Couples and Familieswith Amanda Clayman1h 7m Appropriate for all
New This Week
Your Money Management
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