Economics and the Brain: How People Really Make Decisions in Turbulent Times

An article in one of my favorite topics, “why we are who we are” and “why we do what we do”   🙂   This article reviews findings of how we make decisions  —  the influences, etc.  Leadership and management training.

Excerpt:  “Whereas psychologists tend to view humans as fallible and sometime even self-destructive, economists tend to view people as efficient maximisers of self-interest who make mistakes only when imperfectly informed about the consequences of their actions.”

This view of humans as completely rational – and the market as eminently efficient – is relatively recent. In 1922, in the Journal of Political Economy, Rexford G. Tugwell, said (to paraphrase) that a mind evolved to function best in “the exhilarations and the fatigues of the hunt, the primitive warfare and in the precarious life of nomadism”, had been strangely and quickly transported into a different milieu, without much time to modify the equipment of the old life.

Read full article via Economics and the Brain: How People Really Make Decisions in Turbulent Times | Neuroscience News.

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