Can Neuroeconomics Explain Booms and Busts?

Applying the findings of neuroscience to economics has provided us with a new addition to the dictionary: "neuroeconomics." Nowadays a wealth of studies examine brain activity to helps us understand how we make decisions and translate that into behaviour, in all walks of life. When we apply this to economics it can lead to insightful observations about the business decisions we make, like when buying and trading. One big question in this respect is: how self-made are the booms and busts we have witnessed in recent times? Find out in the rest of this article... ..»