Behavioral Finance Roundtable “Neuroeconomics”

1. Behavioral Finance Roundtable “Neuroeconomics” Union League Philadelphia, PA March 21, 2013 Barry D. Waterhouse, PhD

2. Neuroeconomics • Neural mechanisms underlying • decision-making • Business • Neuroscience • Psychology • Social science

3. Movement Sensation

4. Executive Functions Problem solving Decision making Working memory Sensory perception Salience Attention Multi-tasking Comprehension Sequencing Creativity Cognition

5. Neuroeconomics • Factors affecting decision-making: • Prior experience - knowledge • Current behavioral state – affect, arousal • Innate capacity for risk taking • Reward valuation • Uncertainty – duress, anxiety • Reward history – recent vs extended • Stress • Gender - Age- Genetics - Drugs

6. Behavior Single Neuron Activity and Cognition Cognitive Enhancing Drugs

7. VTA Unit Discharge Schultz et al, 1997

10. Recent Headlines “One in five Nature readers -- mostly scientists – say they up their mental performance with drugs such as Ritalin, ……”, April 28, 2008 “Living the off-label life”, … December 27, 2008 New York Times “Towards responsible use of cognitive-enhancing drugs by the healthy”, December 7, 2008 Greely et al. Nature

11. Thursday November 8, 2007The Guardian Ways to make you think better Students and exhausted workers have been abusing stimulants for decades. But these days, if you're keen to feel sharper, and work for longer, the drugs available are more effective than they once were - and less likely to make you feel awful afterwards. No wonder then that the abuse of pills such as Ritalin and modafinil is becoming a major problem. Katharine Hibbert reports on the rise of cognitive-enhancing drugs ……… Ritalin…….drug of choice in college dorms for exam week ….. “kiddie coke” “Vitamin R”