Neuroeconomics

cognitive and social psychology + behavioral economics + neuroscience

neuroeconomics === decision neuroscience

Neuroeconomics is an interdisciplinary field that seeks to explain human decision making, the ability to process multiple alternatives and to follow a course of action.

Fields

  1. internet marketing

  2. poker

  3. consensus

The framing effect

A cognitive bias where people decide on options based on if the options are presented with positive or negative semantics; e.g. as a loss or as again. People tend to avoid risk when a positive frame is presented but seek risks when a negative frame is presented.

https://www.youtube.com/watch?v=dqxQ3E1bubI

Psychological pricing

TV price: $499.99 > $500

Gym membership: only $1 a day > $365 a year

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Rationality

Loss