The case for mindful economics

Economics, in this chapter, is defined as the study of institutions and variables that may affect certain “economic” choices that are relevant in ascertaining levels of wealth, health, material assets, and other possible sources of happiness. Mindful economics, or neuroeconomics —which veers away from “mindless economics” or an approach that utilizes rational choice and revealed preferences—attempts to make use of neural data in generating a neutral discipline and mathematical approach in dealing with economics. Such an approach would employ data from brain imaging, Transeranial Magnetic Stimulation (TMS), psychophysiological indicators, and other such measures. This chapter presents how behavioral economics, which integrates psychology and neuroeconomics which refers to neuroscience, can be considered in coming up with economic choice theories.

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