Students’ Decision Making Process: Results from an Investment Simulation with EEG
AbstractThe objective of this article is to identify with the aid of an electroencephalogram (EEG) that students use different areas of brain (and therefore different level of neuronal activity) in their decision making process when it comes to a financial investment.
Here, it is used a sample of forty (40) students, both equally divided into 50% male and 50% female. Some findings through brain mapping indicate that these non-financial market practioneers tend to decide under an analytic based rule process rather than an associative based rule one, as the classical financial literature would suggest.
From an economic standpoint, this work is distinct from the classical theories of Finance - Efficient Markets Theory and Modern Portfolio Theory - to the extent that not only employ assumptions of behavioral finance, but also encompass studies of neurocognitive processes.