Objective and Subjective Aspects of Decision-Making Support at the Mesoeconomic Level

This chapter substantiates the importance of improving management effectiveness of mesoeconomic systems in current economic conditions and the features of mesoeconomy as a management object which defines the high complexity of decision making at the meso level. There are approaches, methods, and technologies which provide support of the decision making process via the integration of formal methods for objective data analysis and methods of accounting to solve semi-structured complex problems of mesoeconomy. A cognitive approach, and an approach involving the integration of the On-Line Analytical Processing and Data mining technologies with methods of a multi-criteria assessment of alternative, in particular methods of Multi-Attribute Utility Theory are considered in the chapter. Cognitive mapping of interaction between state and business in a mesoeconomic system are included as a case-study.

Central Language Hypothesis in the Decision-Making Process

The purpose of this chapter is to explore the potential connection between neuroeconomics and the Central Language Hypothesis (CLH) which refers to the language placed within the subconscious mind of an individual. The CLH forwards that in the brains of bilingual and multilingual people, one language is more suppressive as it dominates reflexes, emotions, and senses. This central language (CL) is located at the centre of the limbic cortex of the brain. Therefore, when there is a stimulus on the limbic cortex (e.g., fear, anxiety, sadness), the brain produces the central language. The chapter begins with an Introduction followed by a Theoretical Framework. The next section discusses the neurolinguistic projection of the central language and includes the survey and the results used in this study. The Discussion section provides additional information regarding the questionnaire and the CLH, followed by Future Research Directions, Implications, and finally the Conclusion.

Neuroeconomics and Media Economics

This chapter investigates the development of neuroeconomics as a relative new sub-discipline in the fields of economics and behavioral science. After comparing paradigms of both classical and behavioral economics, the problem of the “conscious and rational consumer” is addressed in relation to more passive views of consumerism in neuroeconomics. Highlighting the most recent trends in neuroeconomics, the chapter also addresses the historical development of the discipline of neuroeconomics as an independent field of research within the fields of media and economics. The problem of new marketing strategies as well as the evolvement of neuroeconomics as an independent discipline in the age of digitalization is presented while considering the changing nature of the media industry.

Behavioral Stream in Polish Accounting

Information which financial market participants use to make their decisions comes directly and indirectly from accounting. Although finance and accounting use the language of numbers which appear to be very clear and plain, it is obvious that sums presented in financial statements and then interpreted and used by financial managers and investors and other stakeholders are very subjective. The goal of this chapter is to pay attention to the implications of behavioral research in accounting and its new stream – neuroaccounting – for behavioral finance. It is argued that accounting should be considered by behavioral finance researchers because the product of accounting in the form of reports, statements, and different analyses represents not only economic standing of a company, but also those behind the scenes.

Successfully Playing Games of Tax Compliance

The purpose of this chapter is to examine the role of government in encouraging fiscal compliance from the theoretical perspective of the ‘Ecology of Games'. Conceptual representations of human behaviour in formal complex institutions, located within Behavioural Economics Political Game Theory, presuppose it is possible for government agencies to strategically influence the behavioural preferences and consumption patterns of individual actors and groups in society. This study presents an empirical case concerned with the implementation and use of an electronic property tax collection system in Bangalore, India developed between 1998 and 2008.

Conjoint Analysis with fMRI

Functional Magnetic Resonance Imaging (fMRI) is a very effective tool in neuromarketing. However, time limits, subject fatigue, fMRI costs, and participants' concentration are problematic. Conjoint analysis and its cards enable shortening the time and providing more attributes for evaluation. Conjoint analysis models of orthogonal matrices keep the amount of conjoint cards to a minimum which shortens the time spent in the fMRI machine and thus lowering costs. All conjoint cards are different and keep subjects concentrated during the test. fMRI is an efficient analyzing method of neuronal architecture and functions for the identification of the brain areas and networks. Conjoint analysis and fMRI are strong, combined methods to analyze customer needs and desires.

Cooperation as a Core Component of Intercultural Competence

Assuming the meaning of intercultural competency is a crucial issue in multicultural societies and within business units as results of globalization, this chapter analyses cooperative attitude as a core component of intercultural competence. First, the chapter explains such terms as intercultural competence, cooperation, and culture, as well as the diffusion of cultures. Cooperation as a social value in strategic human resources management is also considered. Secondly, factors shaping cooperation (divided into two groups: cultural and biological) are discussed from a multidisciplinary perspective. Finally, the neuroeconomic dimension of cooperation is discussed with its subsequent socio-economic implications. The chapter concludes with recommendations regarding human choices resulting from individual ontogenetic processes (including cultural differences, genetic differences, and neural differences) and concludes on cooperative attitudes that are most likely culturally and biologically dependent, and which become a part of intercultural competence desired in a multicultural society and at the work place.

Economic Decision Making, Emotion, and Prefrontal Cortex

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.

Managerial Reactions to Ambiguous Environmental Changes

Managers in organizations are typically faced with changing and ambiguous signals in their operating environment. Based on interpretation of these signals, managers react with appropriate strategies. This chapter presents critical organizational issues in decision making process and its outcomes, including the manager's selective attention, interpretation, and reasoning of uncertain operating environment. In particular, the chapter first discusses why individual managers in the same organization who are faced with same environmental changes may differently interpret threat and opportunity aspects of these changes. Second, the chapter links outcomes of such interpretation to investigate different types of organizational actions. Third, the chapter drives into a greater depth to explore how the manager's experience and characteristics of the environment affect forms of reasoning in interpretation process and performance of subsequent organizational actions.

Rational, Emotional, and Neural Foundations of Economic Preferences

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.