Why People Fail to Make Accurate Predictions About Probability

When we solve problems and make decisions and judgments, we very often use mental shortcuts (so-called heuristics). We use these heuristics if we neither have resources nor time to compare all available information before making a choice. In other words, heuristics ease the cognitive load

Continue readingWhy People Fail to Make Accurate Predictions About Probability

How Money Affects the Brain’s Reward System (Why Money is Addictive)

A study by Elliott and colleagues (2003), published in The Journal of Neuroscience, used a functional magnetic resonance imaging technique (fMRI) to identify the brain areas that are affected by rewards. The parametric technique is a way of investigating how the brain becomes activated when it is

Continue readingHow Money Affects the Brain’s Reward System (Why Money is Addictive)