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Preliminary communication

https://doi.org/10.32728/ric.2017.31/6

INTERDISCIPLINARY APPROACH TO NEURAL NOISE AND PERCEPTION BIAS IN FINANCIAL DECISION MAKING

Ana Njegovanović orcid id orcid.org/0000-0001-6667-0734 ; PhD student
Krešimir Petar Ćosić ; PhD student


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Abstract

The general goal of the interdisciplinary work refers to the research of complex experimental interactions and theoretical works on the subject of neural mechanisms in the perception of decision making; economic and perceptual decision making; high and low volatility bias of the investors perception, and the perception bias during the duration of the stimuli, according to the theory of subsequent effect. The work shows the complex interweaving of scientific achievements in the process of decision making. The given scientific and applicative research leads us towards understanding the levels of complexity of financial decision making with the principles of universality; spatial and temporal fluctuations of input in perceptual decision making (perception can be under the influence of attention and can surface subconsciously without conscious consciousness), possible extending of current results and models from two alternative choices and are they different in respect to spatial and temporal fluctuations ( our capability of deciding can result from random fluctuations in the background of electric noise in the brain) effects on the results of decision making. The focus of this research paper is the analysis of testing the perception of investors which shows us the subsequent effect of volatility, which further indicates the twisted perception
after prolonged exposure to extreme levels of volatility. This established framework can give us key insight in the domain of deductive reasoning. Bias in deductions is questioned using
the VIX index.

Keywords

Neural noise; Subsequent effect; Perceptual bias in decision making; Neuroeconomics; Neurofinance

Hrčak ID:

181076

URI

https://hrcak.srce.hr/181076

Publication date:

28.4.2017.

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