A forum to discuss, contemplate, post, complain, laugh at and understand economics and the economy and its effect on people of my generation. You know what, I'm pretty much gonna start talking about everything, nobody is reading this anyway.

Tuesday, September 19, 2006

New Yorker Article on Neuroeconomics

In last week's issue of the new yorker, a fascinating article came out in regards to a new field of study called neuroeconomics. The field of neuroeconomics questions one of the most basic and traditional principals of economics. That the market participant is rational in his decision making. The article claims that certain situations and decisions cause overactivity in the frontal region of the brain, which tend to limit risk. It focuses on some simple situations where a person makes decisions about risk that it seeks to explain more as emotional rather than rational. It further, shows that people who have had brain damage to the front of their brain actual made riskier decisions, but had higher payoffs.

The article can be found here:

http://www.newyorker.com/printables/fact/060918fa_fact

Your comments are welcome as I found it a worthwhile read.

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