scholarly journals Introduction. Neuroeconomics: the promise and the profit

2008 ◽  
Vol 363 (1511) ◽  
pp. 3767-3769 ◽  
Author(s):  
Wolfram Schultz
Keyword(s):  
Decision Making ◽  
Decision Maker ◽  
Explanatory Power ◽  
Neural Mechanisms ◽  
Individual Decision ◽  
Economic Decisions ◽  
Economic Decision Making ◽  
The Individual ◽  
Gains And Losses ◽  
The Brain

Neuroeconomics investigates the neural mechanisms underlying decisions about rewarding or punishing outcomes (‘economic’ decisions). It combines the knowledge about the behavioural phenomena of economic decisions with the mechanistic explanatory power of neuroscience. Thus, it is about the neurobiological foundations of economic decision making. It is hoped that by ‘opening the box’ we can understand how decisions about gains and losses are directed by the brain of the individual decision maker. Perhaps we can even learn why some decisions are apparently paradoxical or pathological. The knowledge could be used to create situations that avoid suboptimal decisions and harm.

scholarly journals The Role of Emotions in Economic Decision Making

2019 ◽  
Author(s):  
Aslı Öztopçu
Keyword(s):  
Decision Making ◽  
Risk Taking ◽  
Economic Life ◽  
Decision Making Process ◽  
Individual Decision ◽  
Cognitive Error ◽  
Economic Decisions ◽  
Economic Decision Making ◽  
Individual Effects

Decision making points out to the consequences of past or future behaviors. An individual has to make decisions on all subjects throughout his life. An important part of these decisions are economic decisions. Individuals make decisions such as renting, buying, buying new goods, migrating, changing jobs, making investments, enterprise, choosing holidays, evaluating savings. Non-rational decisions are observed although individuals should make rational decision, according to mainstream economics. In this study, the effects of the emotions that form the basis of psychology, such as time, option constraint, opportunities, risk taking, risk aversion, procrastination, rush, or uncertainty, inconsistency, intuitive movement, cognitive error in the decision-making process of individuals are discussed. For this purpose, the characteristics of decision-making process, individual effects of cognitive of emotions, individual decision making theorems in economic theory and behavioral economics literature are mentioned. It is thought that the role of emotions that shape behaviors should be known in the regulation of economic life that is determined according to human behavior.

scholarly journals SELF-ORGANIZATION AS A FACTOR OF ECONOMIC DECISION-MAKING IN THE ORGANIZATIONAL MANAGEMENT SYSTEM OF THE HOLDING COMPANY

2021 ◽  
Vol 18 (4) ◽  
pp. 113-118
Author(s):  
Elena V. Harchevnikova ◽  
◽  
Natalia E. Revenko ◽  
Keyword(s):  
Decision Making ◽  
Management System ◽  
Organizational Management ◽  
Motivational Orientation ◽  
Self Organization ◽  
Economic Decision ◽  
Holding Company ◽  
Economic Decisions ◽  
Economic Decision Making ◽  
The Individual

The article is devoted to the presentation of the results of an empirical study of self-organization of activities as a sig-nificant factor in making economic decisions in the organizational management system of the Holding company «MASCOM Vos-tok». The constructs of self-organization of the manager's activity in the decision-making process are highlighted. The degrees of formation of tactical planning and strategic goal-setting skills are determined, as well as the type and characteristics of personal regu-lation of the subject's choice, his sensitivity to uncertainty, the motivational orientation of the individual, the willingness to take re-sponsibility for the result. In the course of the correlation analysis, the interrelations between the identified features of economic decision-making of managers and the constructs of self-organization of activities are established.

Are the saving decision patterns of bank customers also clouded by psychological biases? Evidence from Ghana

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Joseph Emmanuel Tetteh ◽  
Christopher Boachie
Keyword(s):  
Decision Making ◽  
Loss Aversion ◽  
Design Methodology ◽  
Weighted Least Squares ◽  
Least Squares Regression ◽  
Individual Decision ◽  
Content Type ◽  
Saving Decisions ◽  
The Individual ◽  
Practical Implications

PurposeThis paper attempts to investigate the influence of psychological biases on saving decision-making of bank customers in Ghana.Design/methodology/approachIt employs weighted least squares regression to test the effect of psychological biases on savings decisions of bank customers.FindingsThe findings show that all the nine psychological biases, namely mental accounting, availability, loss aversion, representativeness, anchoring, overconfidence, status quo, framing effect and disposition effect employed for the study have a significant influence on saving decision of bank customers. The results depict that psychological biases are entrenched in the saving pattern of bank customers in Ghana.Practical implicationsFor policy purposes, the study recommends that bank customers need to enhance their knowledge of psychological biases in order to improve their gains from savings, and not to fall prey to these prejudices. The satisfied customer is a dependable source of bank viability and survival.Originality/valueTo the best of the knowledge of the author, this study provides the first empirical evidence of the influence of psychological biases on saving decisions of bank customers in Ghana. The findings of this study will enhance knowledge on the influence of psychological biases on individual decision-making and will accentuate the fact that the individual is not an entirely rational being.

Practitioner's View on the Future of Economic Decision-Making in Project Management

2019 ◽  
Vol 6 (2) ◽  
pp. 33-55
Author(s):  
Brian J. Galli
Keyword(s):  
Decision Making ◽  
Project Management ◽  
Future Trend ◽  
Team Size ◽  
Economic Decision ◽  
Economic Decisions ◽  
Economic Decision Making ◽  
The Future ◽  
Financial Decision ◽  
The Cost

As of now, the best means to plan for the future is project management because it has been proven effective in problem-solving and generating solutions. Few projects entail economic decision-making because of the cost factor, but the wrong decisions can be made because of the complications that come with making economic decisions. However, financial decision-making does not only entail gathering information and making decisions accordingly. The economy must be analyzed and the future economy must be estimated for any economic decisions to be viable. This study highlights the future trend, as well as the significance of economic decision-making within project management. Furthermore, it tests several factors: economic decision-making influence, creativity, risk profile, and the management team size for a successful project. Primarily, this study will assess how significant economic decision-making is in project management.

scholarly journals How Ordinary Consumers Make Complex Economic Decisions: Financial Literacy and Retirement Readiness

2017 ◽  
Vol 07 (03) ◽  
pp. 1750008 ◽  
Author(s):  
Annamaria Lusardi ◽  
Olivia S. Mitchell
Keyword(s):  
Decision Making ◽  
Financial Literacy ◽  
Retirement Planning ◽  
Financial Knowledge ◽  
Objective Measures ◽  
Causal Relationships ◽  
Economic Decision ◽  
American Life ◽  
Economic Decisions ◽  
Economic Decision Making

This paper explores who is financially literate, whether people accurately perceive their own economic decision-making skills, and where these skills come from. Self-assessed and objective measures of financial literacy can be linked to consumers’ efforts to plan for retirement in the American Life Panel, and causal relationships with retirement planning examined by exploiting information about respondent financial knowledge acquired in school. Results show that those with more advanced financial knowledge are those more likely to be retirement-ready.

scholarly journals Social Decision Making with Humans and Robots: Trust and Approachability Mediate Economic Decision Making

2018 ◽  
Author(s):  
Stephanie Tulk ◽  
Eva Wiese
Keyword(s):  
Decision Making ◽  
Ultimatum Game ◽  
Humanoid Robots ◽  
Trust Game ◽  
Social Decision ◽  
Economic Decisions ◽  
Economic Decision Making ◽  
Human Likeness ◽  
Social Decision Making

As humanoid robots become more advanced and commonplace, the average user may find themselves in the position of wondering if their robotic companion truly possesses a mind. It is important for scientists and designers to consider how this will likely affect our interactions with social robots. The current paper explores how social decision making with humanoid robots changes as the degree of their human-likeness changes. For that purpose, we created a spectrum of human-like agents via morphing that ranged from very robot-like to very human-like in physical appearance (in increments of 20%) and measured how this change in physical humanness affected decision-making in two economic games: Ultimatum Game (Experiment 1) and Trust Game (Experiment 2). We expected increases in human-like appearance to lead to a higher rate of punishment for unfair offers in the Ultimatum Game, and to a higher rate of trust in the Trust Game. While physical humanness did not have an impact on economic decisions in either of the experiments, follow-up analyses showed that both subjective ratings of trust and agent approachability mediated the effect of agent appearance on decision-making in both experiments. Possible consequences of these findings for human- robot interactions are discussed.

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