Sunday, September 27, 2015

Caroline Paulsen, Chapter 7, Question 5

One passage that I found interesting in this chapter was about neuroeconomics. Charles Wheelan wrote about an experiment in which people whose brains are damaged such that they cannot control emotions and a control group of people are both asked to make investment decisions. The investors with brain damage ended up with 13 percent more money than those without brain damage. Although I would have assumed that being able to experience fear and anxiety would make people less likely to make risky investment decisions that would likely go very poorly, it was interesting to me that it also decreased the likelihood of them making investment decisions with high potential payoffs, in part because they were less fearful of losses and upset when losses occurred.


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