The purpose of neuroeconomics is to explain human economic DM by illustrating how economic behavior shapes our understanding of the brain and how discoveries can constrain and guide models of economics. The fulfillment of this purpose requires a multi-stepped implementation. One of the steps is to understand the effects of hormones on economic choices, a process here discussed. Firstly, there is an assessment of the essential cognitive feedback on hormones whereby the hormones involved in the economic DM process are described. These are cortisol, oxytocin, testosterone, vasopressin, progesterone and estradiol. Secondly, scientific experiments are analyzed to provide an insight into the effects of these hormones. For instance, cortisol is associated with volatility, uncertainty and increased risk-aversion while the “bonding” hormone oxytocin is associated with generosity, cooperation, reciprocation and in-group conformity. Testosterone is correlated with increased risk-seeking, reciprocation and exploitation of signs of cooperation, whereas its female competitor, progesterone, is associated with increased generosity and cooperation - this occurs only in women. Even though vasopressin stimulates reciprocation more than oxytocin, evidence shows that it may inhibit oxytocin release and thus restrict its effects. Further, risk-aversion in loss domains is found to be correlated with the release of the estrogen estradiol. Finally, fMRI evidence depicts the fact that fluctuations in activation of ACC, amygdala and caudate nucleus are connected with oxytocin, whilst vasopressin affects the functional connectivity of amygdala with insula, ACC and TC.
Collections
Show Collections
