Neuroeconomics: Psychology in Business

Years ago I taught Organizational Behavior classes for several MBA programs. In the classes I taught the psychology behind team-building, leadership development, cooperation with peers, vendors, customers, and much more. For some of us coming from a behaviorist and psychology-based background plus with years of practical business savvy, it made perfect sense to bring basic, natural tenets of how we think and behave into business principles training within an MBA program.

With the new breakthroughs in neurology, psychology has even been introduced into economics, and a number of studies have been done to prove that the mind and its focus on value can influence economics. Attached is a lecture by Drazen Prelec at MIT where he cites three studies that show how our perceptions shape our economies. Having also taught MBA Marketing classes myself, I would add that the marketing surrounding our every waking moment helps to create and mold our perceptions of value.

You may listen to the lecture and read its synopsis by going here. This reminds me that whenever I feel swayed by a strong “belief”, that my belief is only based on my perceptions, and I can change these if I so desire!