Your insular cortex could make you money

Today I take a deep dive into the fascinating world of neuroeconomics - by discussing the paper Irrational exuberance and neural crash warning signals during endogenous experimental market bubbles. By discussing this brilliant 2014 paper from Alec Smith, Terry Lohrenz, Justin King, P. Read Montague, and Colin F. Camerer, I will provide you with some incredible insight about how market price bubbles form, and then bust.
Using an experimental market where participant’s brain activity was measured using fMRI, the experimenters were able to demonstrate how nucleus accumbens activity tracked the growth of the market boom, and how insular cortex activity preceded the market bust.
Link to paper:
doi.org/10.107...
Learn more about the study’s authors:
Alec Smith alecsmith.gith...
Terry Lohrenz fbri.vtc.vt.ed...
Read Montague beam.vt.edu/pe...
Colin Camerer www.hss.caltec...
Shout out to Professor Redmond O’Connell for helping me with today’s episode. Follow Redmond on Twitter @RedmondOConnell and check out the work of the O’Connell lab.
/ redmondoconnell
oconnell-lab.c...
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References:
Smith, A., Lohrenz, T., King, J., Montague, P. R., & Camerer, C. F. (2014). Irrational exuberance and neural crash warning signals during endogenous experimental market bubbles. Proceedings of the National Academy of Sciences, 111(29), 10503-10508. doi.org/10.107...

[@nathankamenchu1239]

This is a wonderful video

[@PatsPsychologyMSc]

Thanks a million Nathan! Were you familiar with neuroeconomics before watching the episode?

[@SnippetsCutTheBull]

Great video, love it. Makes me think of all the other price bubbles. But then there's other incredible companies that buck that trend

[@PatsPsychologyMSc]

Thanks Snippets! What price bubbles and lucky companies sprung to your mind when you were watching?

[@SCarty93]

cryptocurrency & NFT's ?

[@PatsPsychologyMSc]

Absolutely, I think I observe a lot of irrational exuberance when it comes to both cryptocurrencies and nfts. But then, it's so hard to measure or intuit their value. What do you think Simon? Do you forsee a big crypto bust?