Game Theoretic Economics in Neurodecisions
Author’s Details:
(1)Dr Madhubrata Satpathy, Faculty, School of Economics, BJB Autonomous College, Bhubaneswar, India (2)Col Prof Dr J Satpathy, School of Management, Srinivas University, India and Management University of África, Nairobi (3) Prof Sebastian Laza, Executive Director, School of Applied Neuroeconomics, National University of Cuyo, Argentina
Introduction
Most of our economic decisions end up being made more from emotion than from cold rational economic calculation, even if we believe otherwise”. …….. Marisela Cuevas
Following with concrete research results, we will mention the conclusions of other influential neuroeconomic papers. In The Neural Basis of Financial Risk Taking, Kuhnen and Knutsoni tell us that financial investors systematically deviate from rationality when making their portfolio decisions, and in this way, in their study, they try to identify neural mechanisms responsible for such anomalies. Using fmri (neuroimaging), the authors examined whether, by anticipating investors’ neural activity (i.e., By seeing what goes on inside their brain during decision making), optimal and suboptimal financial decisions can be predicted. They characterized two types of deviations with respect to the optimal investment decision (neoclassical): Risk Search Errors and Risk Aversion Errors.
