Abstract

October 14, 2007: Studying how a broker's brain works. swissinfo. "To help maintain its competitive edge, the Swiss banking industry is investing heavily in financial engineering. Its latest recruit is economist Peter Bossaerts. swissinfo talked to Bossaerts, a leading expert in neuroeconomics – the study of how we make financial choices - about his recent appointment as professor at the Federal Institute of Technology in Lausanne.... swissinfo: So what exactly is neuroeconomics? Peter Bossaerts: It's a mixture of decisional theory - mathematical theories applied in risk-based decision-making - and neuroscience.... Neurofinance, therefore, tries to understand how choices are made in a risky world. It looks closely at the workings of the brain while taking into account human emotions.... swissinfo: What is the aim of your work? P.B.: Firstly, to make progress on how people make choices when dealing with risk.... Neuroeconomics should also help improve decisional theory, which doesn't work in the real world where rules are vague and probabilities are unknown. The aim is to build up artificial intelligence based on a theory where decision-making is repeated." >>> Neuroscience, Cognitive Science, Finance & Investing, Applications.