VALUE PERCEPTION BY HUMAN BRAIN AND THE Ψ-RATIONAL COMPONENT OF ECONOMIC DECISION MAKING
Identifikátory výsledku
Kód výsledku v IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F26482789%3A_____%2F19%3AN0000041" target="_blank" >RIV/26482789:_____/19:N0000041 - isvavai.cz</a>
Výsledek na webu
<a href="https://www.aauni.edu/data/files/2019-ifrs-conference-proceedings-v5.pdf" target="_blank" >https://www.aauni.edu/data/files/2019-ifrs-conference-proceedings-v5.pdf</a>
DOI - Digital Object Identifier
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Alternativní jazyky
Jazyk výsledku
angličtina
Název v původním jazyce
VALUE PERCEPTION BY HUMAN BRAIN AND THE Ψ-RATIONAL COMPONENT OF ECONOMIC DECISION MAKING
Popis výsledku v původním jazyce
In this paper we set beyond the numbers, discussing how human brain interprets values in real life and how this conceptually relates to economic decision making. Our text builds on existing research, we synthesize and analyze results provided by other authors to induce and discuss outcomes. Although empirical trials in general falsify the assumption of normative rational decision making, we induce that core economic principles, such as the cost / benefit principle, inherency of opportunity cost and decision making at the margin do apply on the bio-cybernetic level. Human brain uses it's own intrinsic currency to interpret values and memorized data allow to relate the expected to the experienced. It is necessary to distinguish between the "rational" cognitive process and the "economically rational" outcome, as these are two fundamentally different concepts. We furthermore propose to distinguish between the "truly irrational" and what we call "Ψ-rational" within the set of all non-rational components of human decision making. The irrational components, such as missing, unreliable data or cognitive deficit to interpret and process such data always harm the decision making process and lead to economically inefficient outcomes. The Ψ-rational components, such as authentic and pretended altruism, unselfish cooperation, or perception and anticipation of fairness in distribution, contribute to economically efficient decisions within the human society, yet blatantly violating the normative conditions of rational decision making.
Název v anglickém jazyce
VALUE PERCEPTION BY HUMAN BRAIN AND THE Ψ-RATIONAL COMPONENT OF ECONOMIC DECISION MAKING
Popis výsledku anglicky
In this paper we set beyond the numbers, discussing how human brain interprets values in real life and how this conceptually relates to economic decision making. Our text builds on existing research, we synthesize and analyze results provided by other authors to induce and discuss outcomes. Although empirical trials in general falsify the assumption of normative rational decision making, we induce that core economic principles, such as the cost / benefit principle, inherency of opportunity cost and decision making at the margin do apply on the bio-cybernetic level. Human brain uses it's own intrinsic currency to interpret values and memorized data allow to relate the expected to the experienced. It is necessary to distinguish between the "rational" cognitive process and the "economically rational" outcome, as these are two fundamentally different concepts. We furthermore propose to distinguish between the "truly irrational" and what we call "Ψ-rational" within the set of all non-rational components of human decision making. The irrational components, such as missing, unreliable data or cognitive deficit to interpret and process such data always harm the decision making process and lead to economically inefficient outcomes. The Ψ-rational components, such as authentic and pretended altruism, unselfish cooperation, or perception and anticipation of fairness in distribution, contribute to economically efficient decisions within the human society, yet blatantly violating the normative conditions of rational decision making.
Klasifikace
Druh
D - Stať ve sborníku
CEP obor
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OECD FORD obor
50201 - Economic Theory
Návaznosti výsledku
Projekt
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Návaznosti
N - Vyzkumna aktivita podporovana z neverejnych zdroju
Ostatní
Rok uplatnění
2019
Kód důvěrnosti údajů
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů
Údaje specifické pro druh výsledku
Název statě ve sborníku
Conference Proceedings 7th International Scientific ConferenceIFRS: GLOBAL RULES & LOCAL USE- BEYOND THE NUMBERS
ISBN
978-80-87956-96-0
ISSN
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e-ISSN
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Počet stran výsledku
16
Strana od-do
268-283
Název nakladatele
Metropolitan University Prague Press & Anglo-American University
Místo vydání
Praha
Místo konání akce
Praha
Datum konání akce
10. 10. 2019
Typ akce podle státní příslušnosti
EUR - Evropská akce
Kód UT WoS článku
000649685400021