Neuroeconomics
Neuroeconomics is an interdisciplinary field that combines neuroscience, psychology, and economics to study how people make economic decisions. It seeks to understand the brain mechanisms involved in decision-making, including risk, reward, and how people value goods and services. Neuroeconomics provides insights into why people may act irrationally in financial markets and how emotions can influence economic choices.
Example
Researchers in neuroeconomics use brain imaging techniques to study how people evaluate risks and rewards when deciding whether to invest in the stock market.
Key points
• An interdisciplinary field combining neuroscience, psychology, and economics to study decision-making.
• Focuses on brain mechanisms involved in economic choices, including risk and reward.
• Provides insights into why people sometimes make irrational financial decisions.