This study aims to review the relationship between neurological processes and financial behavior from an interdisciplinary perspective. Individual decision-making is…
This study aims to review the relationship between neurological processes and financial behavior from an interdisciplinary perspective. Individual decision-making is influenced by cognitive and affective biases; hence, it becomes pertinent to understand the origin of these biases. Neurofinance is an emerging field of finance budding from neuroeconomics and explains the relationship between human brain activity and financial behavior, drawn from interdisciplinary fields, including neurology, psychology and finance.
This conceptual paper extensively reviews the extant literature and performs meta-analysis to attain its research objectives.
The paper highlights the use of neuroimaging techniques in mapping the brain areas to help understand the processes in the higher cognitive areas of brain. The paper raises some new questions regarding individual preferences and choices while making financial or non-financial decisions.
The special focus on dysfunctions arising in brain because of injury and their impact on decision-making is also a key point in this paper and is summarized using meta-analytic forest plot. The existing literature provides instances where emotional processing is altered by injury in brain and may lead to more advantageous decisions, especially in risky situations.
The purpose of this paper is to propose an integrative framework bringing together results from neuroplasticity and decision-making from a neuroscience perspective with…
The purpose of this paper is to propose an integrative framework bringing together results from neuroplasticity and decision-making from a neuroscience perspective with those from market plasticity, i.e. with which practices market actors shape markets.
Provided that developments in neuroscience indicate that training the brain for orientation toward efficient decision-making processes under uncertainty is possible, an in-depth analysis can be conducted by using the integrative framework, which was set up by the authors for advancing research efforts in neuroeconomics and neurofinance on these lines.
Markets have a plastic character; they can change shape and form and remain in that way thereafter. The marketers have always been causing this change to succeed in their marketing strategies and efforts. Plasticity, hitherto considered by marketing, market sociology and evolutionary economics, has a potential in financial decision-making processes, especially regarding its role in training the brain for stable financial decisions.
The theoretical approach can be incorporated for delivering an alternative representation of the knowledge processes associated with financial decisions.
The practical approach can be used for improving the practical aspects of financial decision-making processes.
The contribution is the first of its kind which integrates neuroscience approaches of plasticity and decision-making with the concept of market plasticity from the literature on economics and management, showing their similarities and opening a new front of discussion on how these two approaches can learn from each other to increase the explanatory power of financial decision-making processes and to gain new insights for financial decision makers on how to make more efficient financial decisions in the times of uncertainty.
Neuroeconomics and neurofinance are emerging as intriguing fields of research, despite sharing ambiguity with the concepts of neuroscience. The relationship among the…
Neuroeconomics and neurofinance are emerging as intriguing fields of research, despite sharing ambiguity with the concepts of neuroscience. The relationship among the concepts of economics, finance and neuroscience is not explicitly defined in the past literature, which distorts the use of neuroeconomics and neurofinance approaches in real-world practice for financial decision-making. The purpose of this paper is to consolidate the literature in the field of neuroeconomics and neurofinance to set up the research agenda for the upcoming scholarship in the field.
The purpose of this paper is to consolidates the extant literature in the fields of neuroeconomics and neurofinance by conducting an extensive systematic literature review to investigate the current state and define the relationship between economics, finance and neuroscience.
This paper identifies and explains the explicit relationship between different sub-fields of neuroscience with neuroeconomics and neurofinance and providing instances for future research studies.
The exclusive and extensive literature survey in the form of systematic literature review is undertaken for understanding the fields of neuroeconomics and neurofinance and is the key highlight of this paper. Another, interesting fact lies with matching the literature in neuroeconomics and neurofinance with further sub-fields of neuroscience such as neurophysiology, neuroanatomy, molecular neuroscience and cognitive neuroscience.