DOI: 10.14704/nq.2018.16.5.1319

Brain Mechanism of Economic Management Risk Decision Based on Kahneman’s Prospect Theory

Tao Gan

Abstract


Risk decision-making under uncertain circumstances is a complicated process, which has always been the focus of economic management research and attention. With the intersection of decision-making neurology and various disciplines, it is possible to open the "black box" of human brain. Based on Kahneman's prospect theory, this research takes the brain mechanism of economic management decision as the research goal and adopts literature research method, neuroscience experiment method, data analysis and other research methods, to study behavior data of "risk avoidance" and "risk seeking" decision-making and the related activation brain regions and brain mechanisms under two different uncertain risk decision-making situations of "gain" and "loss." It is found that N2 and P3 components of frontal lobe, parietal lobe and central region are activated in both risk situations (gain and loss), N2 component is related to the preliminary processing of risk decision-making, P3 component can reflect the cognitive processing mechanism of managers' risk decision-making behavior, and the managers' decision-making behavior and risk preference are obviously influenced by the situation factors.

Keywords


Managers' Risk Decision-making, Prospect Theory, Risk Avoidance, Risk Seeking, Brain Mechanisms

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