ISSN : 2663-2187

ECONOMIC DECISION-MAKING: A NEUROECONOMIC PERSPECTIVE

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Dr Rani Maria Thomas
» doi: 10.48047/AFJBS.4.2.2022.217-225

Abstract

This paper examines how individuals make decisions as economic agents from a neuroeconomic perspective, challenging the traditional classical and neoclassical assumption of perfect rationality. The neuroeconomic perspective draws evidence from neuroimaging using MRI, behavioural experiments, and computational modelling to explain the neural mechanisms and cognitive biases. This perspective has created a paradigm shift in the approaches to decision-making in Economics. A shift from perfect rationality to deterministic neural mechanism as the foundation of human behaviour has several implications for economic theories and policies. The paper also provides suggestions for future interdisciplinary research that could transform our understanding of market dynamics and interpersonal differences in decision-making under uncertainty.

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