Neurological aspects of finance, transmitters, emotions, mirror neuronal activity in financial decision

Abstract

The aim of the research is to analyse neurological aspects for investment decisions making process, which is a result of complex neurophysiological processes, provides constant revaluation of the statistic information about the problem, balancing of various emotional aspects and weighting of many factors' importance. The study contains well-grounded generalization and structuring of the scientists' global scientific heritage regarding the explanation of the mechanism to connect the financial and emotional grounds in the investment decisions making process. The article consists of four parts each of which deals with the study regarding the specific behavioural aspects of the economic choice. The author describes the neurological nature to form the signal for the economic decision-making process, logical order of prediction and selection, psychoneurological mechanisms to define the levels and the expected benefit and risk ratio by the economic entities as fundamental categories of modern microeconomic theory, in the first part. The second part of the article deals with the investigation of neurological mechanisms, as a result of which emotional factors (excitement and disappointment, pride and discomfort, feelings of regret, fear of suffering losses, greed, risk, fear to regret the wrong choice, victory effect etc) provoke investors to make irrational decisions in the investment sphere, negate common sense and logic. The third part of the article deals with the role of neurotransmitters (small endogenous chemical messengers of different types (dopamine, serotonin, norepinephrine), with which brain cells interact through synaptic space) in the financial decision-making process. The fourth part of the article describes the neuron resonance phenomenon, which explains the empathy, formation of the reliable relations of customers and partners in business. This phenomenon is caused by the action of mirror neurons (brain cells that react when a person performs a certain physical movement and also observing how the other person does the same, are responsible for imitation, awareness and understanding of the actions, intentions or emotions of another person), which make one of the most significant inventions in the neuroscience.