In studying the brain activity of test subjects as they decided to make either generous or selfish choices in range of circumstances, Caltech researchers found that a simple computational model could explain and understand altruistic behavior.
Financing is done in much more flexible and efficient ways today than it was 30 years ago due to innovations in financial economics. Recognizing this area's importance to both academia and society, Caltech is developing a curriculum around the study of finance.
It is often said that people who do not learn from history are doomed to repeat it. John P. O'Doherty, professor of psychology and director of the Caltech Brain Imaging Center, discusses our current understanding of how we learn from experience.
Investment magnate Warren Buffett has famously suggested that investors should try to "be fearful when others are greedy and greedy only when others are fearful." That turns out to be excellent advice, according to the results of a new study.
"Would Thomas Edison Receive Tenure?" This was the provocative title for a panel at the 2013 Annual Conference of the National Academy of Inventors (NAI), an organization founded in 2010 in partnership with the United States Patent and Trademark Office.
Caltech researchers have, for the first time, pinpointed areas of the brain that seem to serve as “arbitrators” between two decision-making systems, weighing the reliability of the predictions each makes and then allocating control accordingly.
Subjects were asked to observe the shifting value of a hypothetical financial asset and make predictions about whether it would go up or down, while simultaneously interacting with an "expert" who was also making predictions.