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Economic Behaviour
Although Plato compared the human soul to a chariot
drawn by the two horses of reason and emotion, modern
economics has mostly been a one-horse show: humans
have been assumed to be coolly rational calculators of
their own self-interest. Over the past few years, evidence
from psychology has persuaded many economists that reason
does not always have its way. A burgeoning new fi eld
dubbed “neuroeconomics” seems poised to provide fresh
insights on how Plato’s two horses together produce economic
behaviour.
Identifying the parts of the brain that control economic
actions is one thing. Harder tasks include determining
how neural systems work together to create behaviour and
how wide is the variation in brain patterns between diff erent
people. Th en there are age-old questions of free will:
is your failure to save for old age simply a lifestyle choice,
or is it down to faulty brain circuits? Neuroeconomics
is already providing fascinating conclusions. But Plato’s
chariot will remain an alluring explanation for a while yet.
20/10 - 2024 kl 8:10
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