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Money on the brain – The daily blog of behavioral and cognitive economics

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Money on the brain – The daily blog of behavioral and cognitive economics

The Neuroscience of Money: What Your Brain Is Actually Doing During Every Financial Decision

Every financial decision you make — whether to buy a stock, how much to save, when to sell — is the product of an intricate symphony of neural activity happening below the level of conscious awareness. You think you’re making rational decisions. You’re not. You’re rationalizing decisions that your brain has already made — decisions driven by ancient threat-response systems, dopaminergic reward circuits, and neural architectures that evolved for a world without financial markets. This is the domain of neuroeconomics — the intersection of neuroscience, psychology, and economics — and understanding it may be the most important edge any investor can develop. ….[READ]

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