Economic Decision Making, Emotion, and Prefrontal Cortex

2016 ◽  
pp. 122-131 ◽  
Author(s):  
Salim Lahmiri
Keyword(s):  
Decision Making ◽  
Prefrontal Cortex ◽  
Brain Regions ◽  
Economic Decision ◽  
Financial Decision Making ◽  
Economic Decision Making ◽  
Formal Framework ◽  
Financial Decision ◽  
The Relationship ◽  
The Brain

How diverse regions of the brain are coordinated to produce objective-directed decision is the essence of neuroeconomics. Indeed, the latter is a formal framework to describe the involvement of numerous brain regions including frontal, cingulate, parietal cortex, and striatum in economic and financial decision-making process. The purpose of this chapter is to explain the relationship between economic decision making and emotion on one hand, and the relationship between economic decision making and prefrontal cortex on the other hand.

Economic Decision Making, Emotion, and Prefrontal Cortex

2018 ◽  
pp. 466-476
Author(s):  
Salim Lahmiri
Keyword(s):  
Decision Making ◽  
Prefrontal Cortex ◽  
Brain Regions ◽  
Economic Decision ◽  
Financial Decision Making ◽  
Economic Decision Making ◽  
Formal Framework ◽  
Financial Decision ◽  
The Relationship ◽  
The Brain

How diverse regions of the brain are coordinated to produce objective-directed decision is the essence of neuroeconomics. Indeed, the latter is a formal framework to describe the involvement of numerous brain regions including frontal, cingulate, parietal cortex, and striatum in economic and financial decision-making process. The purpose of this chapter is to explain the relationship between economic decision making and emotion on one hand, and the relationship between economic decision making and prefrontal cortex on the other hand.

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 Do Emotions Benefit Investment Decisions? Anticipatory Emotion and Investment Decisions in Non-professional Investors

2021 ◽  
Vol 12 ◽  
Author(s):  
Neal S. Hinvest ◽  
Muhamed Alsharman ◽  
Margot Roell ◽  
Richard Fairchild
Keyword(s):  
Decision Making ◽  
Skin Conductance ◽  
Skin Conductance Response ◽  
Investment Decisions ◽  
Big Business ◽  
Financial Decision Making ◽  
Financial Trading ◽  
Financial Decision ◽  
The Relationship ◽  
Trading Behaviour

Increasing financial trading performance is big business. A lingering question within academia and industry concerns whether emotions improve or degrade trading performance. In this study, 30 participants distributed hypothetical wealth between a share (a risk) and the bank (paying a small, sure, gain) within four trading games. Skin Conductance Response was measured while playing the games to measure anticipatory emotion, a covert emotion signal that impacts decision-making. Anticipatory emotion was significantly associated with trading performance but the direction of the correlation was dependent upon the share’s movement. Thus, anticipatory emotion is neither wholly “good” nor “bad” for trading; instead, the relationship is context-dependent. This is one of the first studies exploring the association between anticipatory emotion and trading behaviour using trading games within an experimentally rigorous environment. Our findings elucidate the relationship between anticipatory emotion and financial decision-making and have applications for improving trading performance in novice and expert traders.

The Neuroscience of Learning Agility

2021 ◽  
pp. 118-142
Author(s):  
Kim E. Ruyle
Keyword(s):  
Emotional Intelligence ◽  
Prefrontal Cortex ◽  
Executive Function ◽  
Limbic System ◽  
Brain Regions ◽  
Learning Agility ◽  
Attention Networks ◽  
The Relationship ◽  
The Brain

“The Neuroscience of Learning Agility” explores the relationship between neurobiology and learning agility. It provides an overview of the organization of the brain, focusing on the roles of the limbic system and the prefrontal cortex and how these particular brain regions relate to personality, executive function, and the metacompetencies of emotional intelligence and learning agility. The neuroscience of learning is discussed, including the brain’s attention networks, neuroplasticity, and biological underpinnings of memory. An argument is posited that the brain’s perceptions of threats directly impacts one’s personality and, by extension, influences one’s level of learning agility. The chapter concludes by providing neuroscience-based suggestions for developing learning agility.

Attitude for inclusive finance: influence of owner-managers’ and firms’ characteristics on SMEs financial decision making

2019 ◽  
Vol 35 (3) ◽  
pp. 158-171 ◽  
Author(s):  
Rabia Rasheed ◽  
Sulaman Hafeez Siddiqui
Keyword(s):  
Decision Making ◽  
Risk Factor ◽  
Partial Least Square ◽  
Least Square ◽  
Equation Modeling ◽  
Firm Characteristics ◽  
Content Type ◽  
Financial Decision Making ◽  
Financial Decision ◽  
The Relationship

Purpose The adoption and use of financial services by small- and medium-sized enterprises (SMEs) are pivotal in the development of inclusive financial markets. The purpose of this paper is to examine the influence of attitude on financial decision making of SMEs owner-manager. The attitude of SMEs owner-manager comprises of several factors; however, current study identifies few critical factors such as motivation, awareness and risk in the context of Pakistan. The study also includes the personal and firm characteristics as moderating variables to examine their effect on the relationship between attitude and financial decision making of owner-managers. Design/methodology/approach With the help of a structured questionnaire, total 285 valid responses are analyzed to accomplish the research objectives. The study uses SPSS and partial least square-structural equation modeling techniques in order to conduct analysis. The results of study highlight the importance of attitudinal factors such as awareness and risk. Moreover, the moderating effect of personal characteristics on the relationship between attitude and financial decision making has been found strong instead of firm characteristics. Findings The results show that the low awareness level of owner-managers regarding financial products and procedures significantly affects their attitude. Moreover, the less knowledge of financing terms as well as dominant role of owner-managers in taking firm decisions also increase the negative effect of risk factor on SMEs owner-manager attitude. Research limitations/implications The study suggested that policy makers should focus on the financial awareness of SMEs owner-manager to reduce the negativity of risk factor. Originality/value The study contributes toward the literature of inclusive finance and sustainability studies through better understanding of financial decision making of SMEs in emerging economies.

Do Religious Reminders Help You With Your Financial Decisions?

2020 ◽  
Vol 9 (3) ◽  
pp. 42-53
Author(s):  
Orhan Erdem ◽  
Amy Martin
Keyword(s):  
Decision Making ◽  
Undergraduate Students ◽  
Time Preferences ◽  
Prosocial Behaviors ◽  
Financial Decisions ◽  
Financial Decision Making ◽  
Present Bias ◽  
Laboratory Conditions ◽  
Financial Decision ◽  
The Relationship

Although religion is shown to be associated with several prosocial behaviors, not much work has been done on the relationship with economic or financial decision-making. This study aims to fill this gap. Surveying 87 undergraduate students under controlled laboratory conditions, the authors analyzed the effect of subtle reminders of religious concepts on time preferences in relation to finances. The results of the experiments showed that reminding participants of religious themes decreased the percentage of present bias by 10.4%.

Rational, Emotional, and Neural Foundations of Economic Preferences

2016 ◽  
pp. 45-65 ◽  
Author(s):  
Harish C. Chandan
Keyword(s):  
Decision Making ◽  
Psychological Factors ◽  
Economic Behavior ◽  
Economic Decision ◽  
Classical Economics ◽  
Economic Decision Making ◽  
Self Interest ◽  
Economic Preferences ◽  
Decision Making Behavior ◽  
The Brain

Classical economics assumes human economic decision making is completely rational and dominated by self-interest. Behavior economics emerged to account for the fact that human economic preferences are often influenced by emotional and psychological factors leading to inconsistent, intransitive, and irrational decisions that fail to maximize utility and minimize cost and transcend only self-interest. Both rationality and emotions are seated in the human brain in the prefrontal cortex and limbic system, respectively. The brain imaging methods of neuroscience help in understanding the interplay between economic behavior and neural mechanisms. The human economic decision making behavior involves computational and neurobiological processes and is related to the psychological processes. Classical Economics, Psychology, and Neuroscience converge in Neuroeconomics to better understand and predict human economic decision-making. Neuromarketing is an emerging field that uses neuroscience techniques to understand economic preferences of consumers.

Exploring the Relationship Between Stigma, Stigma Challenges, and Disclosure Among Slum-Dwelling Survivors of Intimate Partner Violence in Kenya

2019 ◽  
Vol 26 (10) ◽  
pp. 1188-1208
Author(s):  
Eleanor Maticka-Tyndale ◽  
Jessica Penwell Barnett ◽  
Trocaire
Keyword(s):  
Decision Making ◽  
Intimate Partner Violence ◽  
Survey Data ◽  
Support Groups ◽  
Partner Violence ◽  
Intimate Partner ◽  
Urban Slums ◽  
Financial Decision Making ◽  
Financial Decision ◽  
The Relationship

This article uses survey data from 131 women living in urban slums in Kenya to explore associations between stigma, stigma challenges, empowerment, and disclosure of intimate partner violence (IPV). A total of 81.7% of women reported informal or formal disclosure of IPV. A bystander offering help and experiencing stigma were associated with significant increases in the odds of informal and formal disclosure. There were also significant positive associations between participating in financial decision-making, membership in survivor support groups, and formal disclosure. Results suggest that interpersonal, community, and structural challenges to stigma interfere with stigma as a barrier to disclosure.

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