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The Psychology of Financial Decision Making and Economic Crises
How could the current financial crisis have happened? While fingers have been pointing to greedy banks, subprime-loan officers, and sloppy credit card practices, these are not the only contributors to the economic downturn. A new report in Psychological Science in the Public Interest, a journal of the Association for Psychological Science, examines the psychology of financial decision making, including the role of risk in making economic choices, how individuals behave in stock and credit markets, and how financial crises impact people's well-being. Risk taking is a very important component of financial decision making—If we take out a big loan, will we be able to pay it back?
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In Blind Pursuit of Racial Equality?
New Kellogg School Research Suggests a Colorblind Approach to Diversity May Frustrate Efforts to Identify and Confront Discrimination “Colorblindness” has emerged as central strategy for managing racial diversity in schools, business, politics, and the law, with the hope that deemphasizing racial differences will lead to equality, tolerance and inclusion. However, new research from the Kellogg School of Management shows that promoting colorblindness can lead people to turn a blind eye to even overt examples of racial discrimination and hamper the prospect for intervention.
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Hormone Oxytocin Improves Social Cognition But Only in Less Socially Proficient Individuals
Researchers at Mount Sinai School of Medicine have found that the naturally-occurring hormone oxytocin selectively improves social cognitive abilities for less socially proficient individuals, but has little effect on those who are more socially proficient. The study was published today in Psychological Science. Researchers at the Seaver Autism Center for Research and Treatment at Mount Sinai School of Medicine and Columbia University wanted to determine if oxytocin, popularly dubbed the “hormone of love,” could have widespread benefit in making us more understanding of others.
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‘Halfalogue’: Overheard Cell-Phone Conversations Are Not Only Annoying but Reduce Our Attention
"Yeah, I'm on my way home." "That's funny." "Uh-huh." "What? No! I thought you were – " "Oh, ok." Listening to someone talk on a cell phone is very annoying. A new study published in Psychological Science, a journal of the Association for Psychological Science, finds out why: Hearing just one side of a conversation is much more distracting than hearing both sides and reduces our attention in other tasks. Lauren Emberson, a psychology Ph.D. candidate at Cornell University, came up with the idea for the study when she was taking the bus as an undergraduate student at the University of British Columbia in Vancouver, Canada.
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Perception of Emotion Is Culture-Specific
Want to know how a Japanese person is feeling? Pay attention to the tone of his voice, not his face. That's what other Japanese people would do, anyway. A new study examines how Dutch and Japanese people assess others' emotions and finds that Dutch people pay attention to the facial expression more than Japanese people do. "As humans are social animals, it's important for humans to understand the emotional state of other people to maintain good relationships," says Akihiro Tanaka of Waseda Institute for Advanced Study in Japan.
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False Memories of Self-Performance Result From Watching Others’ Actions
Psychological scientists have discovered all sorts of ways that false memories get created, and now there’s another one for the list: watching someone else do an action can make you think you did it yourself.
