Neuroeconomics: Markets are Moral And You are, too

“Why would you ever trust a stranger with your hard-earned money?  If someone shows that he or she trusts you by investing money with you, neuroeconomics studies have found that the receiver’s brain releases oxytocin.  In addition, the more oxytocin released by people’s brains, the more they returned some of the invested money (which typically earns a large return) to the trustee. “- Paul J. Zak

Let us start our thoughts by defining oxytocin.  Oxytocin is a “hormone used clinically to help begin or continue labour, to control bleeding following delivery, and to stimulate the secretion of breast milk“. http://www.britannica.com/EBchecked/topic/437006/oxytocin

Reason TV recently filmed Paul J. Zak.  Watch and be amazed.  I have included a couple articles I found where Zak explains his studies.

http://www.psychologytoday.com/blog/the-moral-molecule/200811/neuroeconomics-explained-part-one

http://www.psychologytoday.com/blog/the-moral-molecule/200811/neuroeconomics-explained-part-two

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About Christopher Hessenflow

Christopher Hessenflow is a financial planner in the Chicago area. He works with all sorts of people who are much more interesting than he is. He enjoys his career which lends him time to think and, sometimes, be creative. Chip was born bald.
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