Overview
Neuroeconomics is a fascinating field that merges neuroscience, psychology, and economics to explore how our brains influence our economic decisions. By understanding the neural mechanisms behind decision-making, we can better grasp why people often make choices that seem irrational or counterproduc...
Key Terms
Example: Neuroeconomics helps explain why people make irrational financial choices.
Example: Confirmation bias leads people to favor information that confirms their existing beliefs.
Example: Investors assess risk before making stock purchases.
Example: Behavioral economics explains why people might save less than they should.
Example: The prefrontal cortex is involved in decision-making.
Example: Buying a luxury car for status rather than necessity.