It is a branch of economics, which explains the decision making process primarily with the help of neuroscience principles. The methodology used to understand economic behavior consists of neuroscience, social psychology, experimental studies and cognitive analysis. It is an interdisciplinary field that tries to unravel the mysteries behind human decision making. Though a day to day affair, the process of decision involves multiple level cognitive activities to choose an optimal course of action. It studies decision making in two angles .On the one hand how economic behavior can shape our understanding of the brain, and on the other how neurological discoveries guide in framing models of economics. Further many of current decision making turmoil from various governmental and non-governmental agencies can be avoided by using tools from Neuro Economics. The center focuses on such issues on uncertainty and rationality. More specifically, it examines how people’s willingness to pay for goods make changes in brain which renders them more selfish and more impatient. It also examines the tendency of the people to violate social norms and cheat their trading partners and the reasons for trusting one another. Above all it studies various aspects of irrational risk-taking, relative valuation of short and long-term costs and benefits and altruistic or charitable behavior.
- COGNITIVE SCIENCE OF ECONOMIC DECISIONS
Cognitive Dimensions of Social Science: The Way We Think About Politics, Economics, Law, and Society (Psychology)
Author: Mark Turner (2001)
What will be the future of social science? Where exactly do we stand, and where do we go from here? What kinds of problems should we be addressing, with what kinds of approaches and arguments? In Cognitive Dimensions of Social Science, Mark Turner offers an answer to these pressing questions: social science is headed toward convergence with cognitive science. Together they will give us a new and better approach to the study of what human beings are, what human beings do, what kind of mind they have, and how that mind developed over the history of the species. Turner, one of the originators of the cognitive scientific theory of conceptual integration, here explores how the application of that theory enriches the social scientific study of meaning, culture, identity, reason, choice, judgment, decision, innovation, and invention.
About fifty thousand years ago, humans made a spectacular advance: they became cognitively modern. This development made possible the invention of the vast range of knowledge, practices, and institutions that social scientists try to explain. For Turner, the anchor of all social science – anthropology, political science, sociology, economics – must be the study of the cognitively modern human mind. In this book, Turner moves the study of those extraordinary mental powers to the center of social scientific research and analysis.
- UNCERTAINTY, RATIONALITY AND NEUROECONOMICS
Psychology, Rationality and Economic Behaviour Challenging Standard Assumptions
Economics has paid little attention to the psychology of economic behaviour, leading to somewhat simplistic assumptions about human nature. The psychological aspects have typically been reduced to standard utility theory, based on a narrow conception of rationality and self-interest maximization. The contributions in this volume, some focused on analytical models and methodology, others on laboratory and field experiments, challenge these assumptions, and provide novel and complex understandings of human motivation and economic decision-making. With a pioneering introduction by the book’s two editors, this volume brings together exciting contributions to a field that is rapidly growing in influence and reach.