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research article

What Decision Neuroscience Teaches Us About Financial Decision Making

Bossaerts, Peter  
2009
Annual Review Of Financial Economics

Financial decision making is the outcome of complex neurophysiological processes involving, among others, constant re-evaluation of the statistics of the problem at hand, balancing of the various emotional aspects, and computation of the very value signals that are at the core of modern economic thinking. The evidence suggests that emotions play a crucial supporting role in the mathematical computations needed for reasoned choice, rather than interfering with it, even if emotions (and their mathematical counterparts) may not always be balanced appropriately. Decision neuroscience can be expected in the neat future to provide a number of effective tools for improved financial decision making.

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Type
research article
DOI
10.1146/annurev.financial.102708.141514
Web of Science ID

WOS:000274366000016

Author(s)
Bossaerts, Peter  
Date Issued

2009

Published in
Annual Review Of Financial Economics
Volume

1

Start page

383

End page

404

Subjects

neuroeconomics

•

experimental finance

•

risk

•

emotions

•

Risk-Taking Behavior

•

Normal-Form Games

•

Orbitofrontal Cortex

•

Prefrontal Cortex

•

Prediction Errors

•

Human Brain

•

Dopamine Neurons

•

Monetary Rewards

•

Neural Response

•

Choice Behavior

Editorial or Peer reviewed

REVIEWED

Written at

EPFL

EPFL units
SFI-PB  
Available on Infoscience
November 30, 2010
Use this identifier to reference this record
https://infoscience.epfl.ch/handle/20.500.14299/59463
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