Neuroeconomic Perspectives for Economics

Abstract

Neoliberalism is based on the economic rationality of economic agents, but both cognitive shortcomings and emotional biases in economics decision-making are well documented. A neuroeconomic model (NeM) comprising seven different nodes in a client-server-integrator system (cybernetics of the second order) presents a new approach to behavioral economics focusing risk-preference. The way that individual characteristics influence economic decisions depends on personality. Some people are principally pragmatic with little preference for risk, some are more rational with a moderate approach to risk and some enjoy risk. These people are identified respectively as Pragmatics, Rationalists and Explorers. The rapid rise of explorative behavior is the core of the creative class. Three macroeconomic focus points are outlined: 1) Equality by Universal Basic Income, 2) Environmental protection by Carbon Emission Tax, and 3) Individualized stress-management. In-all, neuroeconomics calls for center-based macroeconomic alternatives to the ruling Neoliberalism e. g. social liberalism or social democracy.

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