Neuroeconomics is an emerging field that combines principles from economics, psychology, and neuroscience to better understand human decision-making processes. This article, based on the study by Agrela Rodrigues and Vieira (2018) published in the CPAH Science Journal of Health, explores how neuroeconomics can be applied to optimize and improve business, highlighting its practical and theoretical implications.
Integration of Neuroscience and Economics
Over the past few decades, both behavioral economics and cognitive neuroscience have made significant advances. Behavioral economics has challenged the idea of “irrational agency” based on empirical evidence, while cognitive neuroscience has benefited from the advent of brain imaging technologies such as functional magnetic resonance imaging (fMRI). These technologies have allowed researchers to map areas of the brain involved in different cognitive states, making it easier to understand how decisions are made at the neural level (neuroeconomics-CPAH).
Application of Neuroeconomics in the Business Environment
Neuroeconomics offers valuable insights into value, reward, and consumer behavior that can be applied in the business environment to improve team building and dynamics. Understanding how people work together not only ensures economic profit, but also increases individual satisfaction. For example, synchronizing actions within a team can promote cohesion and improve task performance. Studies have shown that synchronization, such as coordinated walking or participating in synchronous activities, increases cooperation and rapport among team members (neuroeconomics-CPAH).
Synchronization and Performance
Research has shown that synchronization of brain activity between individuals engaged in coordinated actions can predict prosocial behavior and the achievement of shared goals. This suggests that pre-task activities, such as synchronization rituals, can be implemented to improve team task performance. These practices not only increase team efficiency but also foster a more cohesive and cooperative work environment(neuroeconomics-CPAH).
Fairness and Reward in Teamwork
Implementing fair reward structures is crucial to team success. Fairness and cooperation are factors that stimulate the reward regions of the brain and increase intrinsic motivation. Studies show that individuals tend to prefer interpersonal equity over material reward, indicating that business practices that emphasize fairness and cooperation can lead to greater job satisfaction and performance(neuroeconomics-CPAH).
Cognitive Effort and Decision Making
Neuroeconomics also explores the cognitive effort involved in decision-making. Willingness to engage in cognitively demanding tasks, as measured by the Need for Cognition Scale, is associated with better academic and professional performance. Understanding the costs and benefits of cognitive effort can help optimize decision-making strategies and allocate resources more effectively within organizations (neuroeconomics-CPAH).
Conclusion
Neuroeconomics offers a unique and powerful perspective for improving decision-making and business performance. Integrating insights from neuroscience, economics, and psychology, this emerging field can help companies develop more effective strategies, promote cooperation and fairness in the workplace, and optimize team performance. Agrela Rodrigues and Vieira’s (2018) study highlights the importance of adopting a neuroeconomic approach to address contemporary business challenges and improve employee satisfaction and productivity.
Reference:
AGRELA RODRIGUES, F. de A.; VIEIRA, S. Neuroeconomics and its application as a vehicle to optimize and improve business. CPAH Science Journal of Health, v. 1, no. 1, p. 139-145, 2018. Available at: https://doi.org/10.37811/cl_rcm.v1i1.7924. Accessed on: 13 Oct. 2023.
Dr. Fabiano de Abreu Agrela Rodrigues MRSB holds a post-PhD in Neuroscience and is an elected member of Sigma Xi – The Scientific Research Honor Society (more than 200 members of Sigma Xi have received the Nobel Prize), as well as being a member of the Society for Neuroscience in the United States, the Royal Society of Biology and The Royal Society of Medicine in the United Kingdom, the European Society of Human Genetics in Vienna, Austria, and the APA – American Philosophical Association in the United States. He holds a Master’s degree in Psychology and a Bachelor’s degree in History and Biology. He is also a Technologist in Anthropology and Philosophy, with several national and international degrees in Neuroscience and Neuropsychology. Dr. Fabiano is a member of prestigious high IQ societies, including Mensa International, Intertel, ISPE High IQ Society, Triple Nine Society, ISI-Society, and HELLIQ Society High IQ. He is the author of more than 300 scientific studies and 30 books. He is currently a visiting professor at PUCRS in Brazil, UNIFRANZ in Bolivia and Santander in Mexico. He also serves as Director of CPAH – Centro de Pesquisa e Análises Heráclito and is the creator of the GIP project, which estimates IQ through the analysis of genetic intelligence. Dr. Fabiano is also a registered journalist, having his name included in the book of records for achieving four records, one of which is for being the greatest creator of characters in the history of the press.