Why do Consumers Make Mistakes? Neuroeconomics and How it Might Improve Financial Regulation Cover Image

Dlaczego inwestorzy popełniają błędy? Neuroekonomia – czyli o tym, jak neurobiologia może pomóc prawnikom
Why do Consumers Make Mistakes? Neuroeconomics and How it Might Improve Financial Regulation

Author(s): Joanna Wiśniowska
Subject(s): Economy, Organizational Psychology, Economic development
Published by: Wyższa Szkoła Biznesu i Przedsiębiorczości w Ostrowcu Świętokrzyskim
Keywords: neuroeconomics; behavioural biases; endowment effect; instantaneous gratification; hyperbolic discounting;

Summary/Abstract: Consumers’ decision-making process is proved to be prone to behavioural biases. Due to interesting psychological findings combined with understanding of economic theories and recent development in the area of neuroscience, a new interdisciplinary field has emerged – neuroeconomics. Research conducted on human brain improved our understanding of cognitive and biological foundations of making investment decisions. Being able to explain mechanisms of two major behavioural biases, namely instantaneous gratification and reference dependence, indirectly provide the unique knowledge about financial markets. The question, however, arises: would lawyers use that knowledge while thinking about changing financial regulation?

  • Issue Year: 12/2018
  • Issue No: 2
  • Page Range: 45-55
  • Page Count: 11
  • Language: Polish