Game Theoretic Economics in Neurodecisions

Author(s)

Col Prof Dr. J Satpathy , Dr Madhubrata Satpathy , Dr Sebastian Laza ,

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Volume 11 - February 2022 (02)

Abstract

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 Knutson 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.

Keywords

Game Theoretic Economics, Neurodecisions

References

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