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How porn can hinder your financial decision-making – The Investor

See on Scoop.itBounded Rationality and Beyond

Regulators around the world are worried about new innovations at the intersection of psychology and financial services. But they need to relax. Behavioural science and neuroeconomics can be used for good provided we keep up with the findings.

Like any new technology, it is easy to let caution worry us more than opportunity. From nuclear technology to genetically modified foods, we can focus on the potential harms, rather than the benefits. Behavioural economics has developed theories about why people make bad financial decisions. Neuroeconomics studies brain anatomy and chemistry to understand how economic decisions are made. Both fields are providing powerful insights that can be used for good or for ill.

 
See on investor.moneyweb.co.za



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