Table of Contents

Minding Maps Whilst Mapping Minds: Pragmatic Mutualism for Neuroeconomics and Economic Geography

Dane P. Rook, University of Oxford - Smith School of Enterprise and the Environment

Chapter 26: The Surprising Real World of Traders’ Psychology

Denise K. Shull, The ReThink Group Inc.
Dr. Kenneth Celiano, Even-Keel Trading
Andrew Menaker, Andrew Menaker LLC


NEUROECONOMICS eJOURNAL

"Minding Maps Whilst Mapping Minds: Pragmatic Mutualism for Neuroeconomics and Economic Geography" Free Download

DANE P. ROOK, University of Oxford - Smith School of Enterprise and the Environment
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Economic geography and neuroeconomics might mutually and substantially benefit from informing one another. Yet, correspondence between these disciplines has been minimal to date. This paper demonstrates how neuroeconomists could particularly gain from geographic engagement because of significant need (and budding interest) by neuroeconomists to embrace two concepts that economic geographers know quite well: reflexivity and multi-scalar dynamics. Neuroeconomics stands at a crossroads and absorption of geographic perspectives on these principles could sizably advance neuroeconomic theory and methodology. For their part, by engaging with neuroeconomics geographers could accelerate pragmatic redefinition of both identity and rationality as more relational and procedural constructs.

"Chapter 26: The Surprising Real World of Traders’ Psychology" 
Investor Behavior: The Psychology of Financial Planning and Investing. H. Kent Baker and Victor Ricciardi, editors, 477-493, Hoboken, NJ: John Wiley & Sons, Inc., 2014

DENISE K. SHULL, The ReThink Group Inc.
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DR. KENNETH CELIANO, Even-Keel Trading
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ANDREW MENAKER, Andrew Menaker LLC
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Trading psychology offers a unique look at unexpected factors in risk decisions made in uncertain circumstances. Traders, by definition, constantly make judgment calls and face a roller coaster of positive and negative feedback via the authority figure of price. Emanating from the historically dominant theories of efficient markets, human rationality, and the cognitive-behavioral school of psychology, conventional wisdom teaches that success emerges from accurate quantitative analyses. Multidisciplinary research in perception, judgment, and decision-making under uncertainty combined with qualitative evidence from hundreds of client interviews and coaching sessions with traders about investment performance reveal a different story. Unconscious affective contexts stemming from historical and current social milieus and revealed in what today’s brain scientists call “embodied cognition? paint a more accurate picture.

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About this eJournal

This eJournal distributes working and accepted paper abstracts focused on research where economic outcomes are the product of many individual decisions, constrained by scarcity, and equilibrium forces that simultaneously shape a person's social networks and the institutionally defined rules of the game. Decisions are made by computations in the brain which produce action-choices that directly affect the homeostatic wellbeing of the individual and choices that indirectly change wellbeing by changing an individual's future constraints, the scope of their social networks, and their message sending rights within the institutions they participate. Neuroeconomics broadly speaking is interested in the study of these computations and the resulting choices they produce. This includes experiments that attempt to understand the mechanisms of neuronal computations that produce action-choices, theories which predict how neuronal computations in socio-economic environments produce decisions, outcomes and wellbeing, and policy which use our understanding of neuoroeconomic behavior to either build or defend better solutions to societal problems.

Editors: Michael C. Jensen, Harvard University, and Kevin A. McCabe, George Mason University

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ERN SUBJECT MATTER EJOURNALS

MICHAEL C. JENSEN
Harvard Business School, Social Science Electronic Publishing (SSEP), Inc., National Bureau of Economic Research (NBER), European Corporate Governance Institute (ECGI)
Email: mjensen@hbs.edu

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Advisory Board

Neuroeconomics eJournal

ANDREW W. LO
Harris & Harris Group Professor, Massachusetts Institute of Technology (MIT) - Sloan School of Management, Principal Investigator, Massachusetts Institute of Technology (MIT) - Computer Science and Artificial Intelligence Laboratory (CSAIL), National Bureau of Economic Research (NBER)

P. READ MONTAGUE
Professor, Baylor University - Department of Neuroscience

VERNON L. SMITH
Professor of Economics and Law, Chapman University - Economic Science Institute, Chapman University School of Law