"Sick in the head" is the best investors

People with certain brain injuries can make better investment decisions. Such conclusion has been new research that has provided evidence that, when an investor lends itself to the emotions, it can lead to very negative results. The researchers concluded that when a person has broken the ability to experience emotions, it may make better financial decisions than other people in similar circumstances. This study refers to the interdisciplinary field called "neuroeconomics", which has been rapidly developing. Neuroeconomics studies the role of biological factors in economic decision-making and is located at the intersection of neuroscience, psychology and Economics. The above study was conducted by a team of researchers from Carnegie Mellon University, Stanford Graduate School of Business and University of Iowa. The study results were published last month in the journal Psychological Science. According to this study, people with a weakened ability to Express emotions such as fear, show the best results in the investment game compared to other people. Study participants with brain damage, are more inclined to take risk, and this risk is ultimately rewarded with additional income. These participants showed less emotion about damages, and they completed the investment game, having 3% more money than other players. Fifteen study participants with brain damage were people with normal IQ, and the area of the brain responsible for logic and cognitive abilities, had no damage. But they were damaged area of the brain that controls emotions and affecting the ability to Express basic emotions such as fear or excitement. People with intact brains during the game showed great care and eventually earned less money. Some researchers believe that good investors may have special art to suppress their emotional reactions. "Perhaps people who often are at risk or are good investors, there are so-called "emotional psychopathy," says Anthony behar, associate Professor of neurology University of Iowa. These people show no emotional reaction to any event. Good investors can in a certain way to control their emotions, and emotions will be restrained, as in people with brain damage". Among the study participants were people with brain damage, as well as people without any brain disorders. Players were given $ 20 and asked them to play a simple game for money. Under the terms of the game, had 20 times to flip the coin. If people were guessing what side dropped a coin, he received $ 2.5. If he didn't win, you had to give a dollar. The player was able to pass the course, and in this case, the dollar was left to him. Logic dictates that the best tactic was not to miss a single turn, as the win was much more of a loss, and the risk of loss was 50 to 50. Players with damage to areas of the brain responsible for emotions, adopt this tactic, relevant logic, and used on average 84% of the moves. Players without brain disorders used only 58% of the moves. Eventually at the end of the game in people with disorders of the brain was on average 25.7 dollar, and people without brain disorders - 22,80 dollar. Researchers believe that people who do not have brain damage, was prevented by fear. These people know that it is more logical to use each turn, but after losing once, start to react to this loss and to pass the course. But emotions can still play a useful role in making financial decisions. People with brain damage is better manifested themselves in the game, but they have not shown the best results when making financial decisions, in jobs on the basis of examples from real life. Three quarters of people with brain damage came to bankruptcy, because they or highly risked, or, as it showed no emotion, has been deceived by other people. This example showed that emotions can play an important role in the protection of interests, even if they sometimes interfere with making rational decisions. Fear has evolved in humans as a survival instinct for protection from predators. But in a world where there are no predators at every step, fear can be developed too much, people can react to the danger, which is actually not. Fear can cause you to make irrational decisions. "People have a pathological reluctance to take risks," says George W. Loewenstein, Professor of Economics at Carnegie Mellon University and co-author of the study. Many of the mechanisms that drive our emotions, not very well adapted to modern life". Wall Street Journal (Russian text "Podrobnostyami").



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