Neuroeconomic Psychology

Abstract

A neuroeconomic decision-making model identifies risk-preference as the basal parameter of economic behavior. Other studies show that persons differentiated by weak, medium, and strong risk-preference have separate behavioral patterns. However, general personality psychology identifies five different personality types. A study of the relationship between risk-preference and personality type shows complementarity and strong correlation between risk-preference and extreme personality types “extravert” and “risk-averter.” The moderated personality types “open-minded,” “respective,” “agreeable,” or “conscientious” behave risk neutral with an internal order according to degree of flexibility. The integrated model of neuroeconomic psychology operates in three complementary cognitive tools: general skills to differentiate between the five types of economic agents is relevant for collaboration; the substance of the moderated personality types is the dual thinking process; and to handle stress the action-mechanism of classical mantra-meditation is explained as reinforcing open-mindedness.