Decision-making in economics: Critical lessons from neurobiology

Renato Alas Martins*, Avik Mukherjee, Kuldeep Kumar, Munirul H. Nabin, Sukanto Bhattacharya

*Corresponding author for this work

Research output: Chapter in Book/Report/Conference proceedingOther chapter contributionResearchpeer-review

2 Citations (Scopus)

Abstract

In this chapter, the authors consider some of the issues regarding the rational choice decision framework in neoclassical economics and how it can particularly be found wanting in the absence of due consideration for some of the underlying critical neurobiological factors which govern decision making. They develop a critical decision problem and explore the scenario where the solution predicted by formal economic theory may be in conflict with the decision that actually occurs. Such conflict is especially relevant in the context of economic decision making in emerging markets where there can be a lack of trust in the system by the agents operating within it. Based on logically consistent arguments derived from the extant literature, the authors argue that non-consideration of underlying neurobiological factors is a direct cause of this conflict.

Original languageEnglish
Title of host publicationEconomic Behavior, Game Theory, and Technology in Emerging Markets
EditorsB Christiansen, M Basilgan
PublisherIGI Global
Pages46-56
Number of pages11
ISBN (Electronic)9781466647466
ISBN (Print)1466647450, 9781466647459
DOIs
Publication statusPublished - 30 Nov 2013

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Decision making
Economics
Critical factors
Economic theory
Emerging markets
Scenarios
Neoclassical economics
Factors
Rational choice

Cite this

Martins, R. A., Mukherjee, A., Kumar, K., Nabin, M. H., & Bhattacharya, S. (2013). Decision-making in economics: Critical lessons from neurobiology. In B. Christiansen, & M. Basilgan (Eds.), Economic Behavior, Game Theory, and Technology in Emerging Markets (pp. 46-56). IGI Global. https://doi.org/10.4018/978-1-4666-4745-9.ch004
Martins, Renato Alas ; Mukherjee, Avik ; Kumar, Kuldeep ; Nabin, Munirul H. ; Bhattacharya, Sukanto. / Decision-making in economics: Critical lessons from neurobiology. Economic Behavior, Game Theory, and Technology in Emerging Markets. editor / B Christiansen ; M Basilgan. IGI Global, 2013. pp. 46-56
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Martins, RA, Mukherjee, A, Kumar, K, Nabin, MH & Bhattacharya, S 2013, Decision-making in economics: Critical lessons from neurobiology. in B Christiansen & M Basilgan (eds), Economic Behavior, Game Theory, and Technology in Emerging Markets. IGI Global, pp. 46-56. https://doi.org/10.4018/978-1-4666-4745-9.ch004

Decision-making in economics: Critical lessons from neurobiology. / Martins, Renato Alas; Mukherjee, Avik; Kumar, Kuldeep; Nabin, Munirul H.; Bhattacharya, Sukanto.

Economic Behavior, Game Theory, and Technology in Emerging Markets. ed. / B Christiansen; M Basilgan. IGI Global, 2013. p. 46-56.

Research output: Chapter in Book/Report/Conference proceedingOther chapter contributionResearchpeer-review

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Martins RA, Mukherjee A, Kumar K, Nabin MH, Bhattacharya S. Decision-making in economics: Critical lessons from neurobiology. In Christiansen B, Basilgan M, editors, Economic Behavior, Game Theory, and Technology in Emerging Markets. IGI Global. 2013. p. 46-56 https://doi.org/10.4018/978-1-4666-4745-9.ch004