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NeuroEconomics: How Neuroscience Can Inform Economics
In the last two decades, Behavioral Economics (the importation of ideas from Psychology to Economics) has become a prominent fixture on the intellectual landscape. In turn, it has spawned the field of 'Neuroeconomics', whereby ideas from Neuroscience are imported into Economics. The study of the human brain and nervous system is beginning to allow for direct measurement of thoughts and feelings; and this, in turn, is challenging our understanding of the relation between mind and action, leading to new theoretical constructs and calling old ones into question. The authors describe the findings to date, covering automatic vs. controlled processes and cognitive vs. affective processes, and their general implications for Economics.