Keynote Address: Brain Science Perspectives on Investor Behavior and Decision-Making Errors

19 Pages Posted: 29 May 2018 Last revised: 6 Jun 2018

See all articles by Owen D. Jones

Owen D. Jones

Vanderbilt University - Law School & Dept. of Biological Sciences

Date Written: June 1, 2017

Abstract

Time horizons for maximizing the value of an investment vary among individuals in surprisingly wide, imperfectly predictable, and often seemingly irrational ways. Problems ensue.

A deeper understanding of the causes of this variation might aid in the planning and design of legal and corporate policies.

Consequently, this article provides brain science perspectives on:

1) Why does the brain discount time?; and

2) How does the brain discount time?

The article is based on a Keynote Address at the Berle IX Symposium on Investor Time Horizons.

Keywords: corporations, corporate law, investor psychology, decision-making errors, behavioral economics, cognitive heuristics and biases, time horizons, time discounting, neuroscience, psychology, evolutionary biology, behavioral biology, cognitive science, time-shifted rationality, brain science

JEL Classification: B25, D8, D80, D81, D9, D90, D92, D99, K00, K2, K11, K20, K22, K23

Suggested Citation

Jones, Owen D., Keynote Address: Brain Science Perspectives on Investor Behavior and Decision-Making Errors (June 1, 2017). Seattle University Law Review, Vol. 41, pp. 349-366, 2018 ; Vanderbilt Law Research Paper No. 18 - 22. Available at SSRN: https://ssrn.com/abstract=3168062

Owen D. Jones (Contact Author)

Vanderbilt University - Law School & Dept. of Biological Sciences ( email )

131 21st Avenue South
Nashville, TN 37203-1181
United States

HOME PAGE: http://law.vanderbilt.edu/bio/owen-jones

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