Neuroeconomics

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Definition: Neuroeconomics



What is the dictionary definition of Neuroeconomics?

Dictionary Definition


A combination of neuroscience, economics and psychology used to study the decision-making process.

Full Definition of Neuroeconomics


Neuroeconomics is a new science that works at the intersection between neuroscience and economics.

Researchers are investigating the link between thought, emotion and economic behaviour. It has long been stated, for example, that investment is driven largely by fear and greed. Neuroeconomists are attempting to define exactly to what extent that is true, and how the process works.

This approach is believed to help understand how reward and punishment, risk-taking, altruism and addiction can all lead to economic activities that might be considered ‘irrational’.

Using magnetic resonance imaging (MRI) they have determined that different parts of the brain respond to (or ‘light up’) for different types of decision-making or emotional response.

Influences

Neuroeconomics has been developing theories based on the pioneering approach of behavioural economics, a discipline that seeks to move beyond theories of ‘rational’ decision making to understand how emotions influenced the actual behaviour of individuals in isolation, and of markets as a whole.


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Definition Sources


Definitions for Neuroeconomics are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 29th March, 2020 | 0 Views.