Important decisions use emotion as well as logic. Psychologists, neuroscientists and economists are working in a new field called ‘neuro economics‘ to explain how economic decisions are made.
These scientists give a test subject a difficult economic choice. Then they watch what parts of the brain are used. Emotions and logic areas are both used plus another area called dorsolateral prefrontal cortex (DLPFC). The DLPFC is like a judge that listens to both emotion and logic and balances the two. When the DLPFC is turned off using magnets, decisions change. Emotion loses weight while logic gains weight. This results in decisions that may seem ‘unfair’ to the decision maker.
Economists assume that people use logic to make economic decisions. Any economic gain is assumed to be positive, regardless of how small. This assumption may not be true. It appears that people use ‘fairness‘ as part of economic decisions. Emotion, reason and self-interest are all part of important personal decisions.
This new view helps explain ideas such as fairness, compassion, and cooperation. It may also give ideas about why suicide bombers may choose an ideal over life.
Your Opinion, Please
How do you make important decisions? Do you use logic or emotion or both?
As you look back at decisions in your life, were the best ones made using mostly logic or emotion?
What do you think is necessary to make a decision ‘fair’?
An Experiment
I will give one person $10 if they get another person to agree to share at least 1 penny of the $10. If they do not agree to the amount to be shared, neither of you will get anything.
How much did you agree to share?
Vocabulary Words
assume: believe without thinking
assumed: believe without thinking
assumption: believe without thinking
bombers: a person who explodes a bomb
compassion: caring about other people
cooperation: working together
cortex: part of the brain
dorsolateral: part of the brain
economics: the study of buying and selling
economists: people who know a lot about how the economy works
fairness: good for everyone
logic: rules
magnets: a mineral that has magnetic force
mostly: almost all
neuro: brain
neuroscientists: scientists that study the brain
positive: helpful
prefrontal: part of the brain
regardless: always
self: who you are
suicide: kill yourself
