Nueroeconomics (Markets Based on Compassion, Not Greed)

Nueroeconmics could be considered a combined study of Behavioral Economics (investigation of human behavior through naturalistic observations) and Nueroscience (scientific study of the brain). Much of modern economics and finance is based on the assumption that people are rational, thus they systematically maximize their own happiness or as economists call it their utility. On the contrary, markets are not rational nor does capitalism based on greed maximizes ones happiness. “Markets are pro-social. Markets are about serving the needs of another—that is innately virtuous,” says Paul J. Zak, professor of Economics at Claremont Graduate University.