Neuroeconomics
From ArticleWorld

When making a choice, an individual evaluates the options, looks at
the risks and rewards and interacts with others. The brain is involved
in the process and the aim of neuroeconomics is to find out exactly
how by applying neuroscience, psychology and economics. The novelty of
the approach is the adding of the nervous system as a variable to be
considered in behavioural economics.

Neuroscience is concerned with the nervous system in terms of senses
and movement, economics studies the choices and decisions made by
groups and individuals and psychology looks at thought and perception.

Neuroeconomics, on the other hand, studies the way neurons and
biochemistry work during the making of personal decisions; it applies
economic theories but focuses on the mental changes that occur when
choices are made and the psychological aspect concentrates on the
cognitive processes that lead to the understanding of the options
available and to the choosing of one.

Applications

This combination of biology and human behaviour is a new approach but
has already been applied in the legal process of proving guilt beyond
a reasonable doubt and in the analysis of the demand for communication
services. It is also considered likely to prove invaluable to the
advertising industry in the near future.

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Categories: Applied psychology | Neuroscience