TY - JOUR
T1 - Rationality and Emotionality Interplay and Economic Contributions
T2 - A Neuroeconomics Experiment
AU - Sarker, Ashutosh
AU - Poon, Wai Ching
AU - Haque, Shamsul
AU - Herath, Gamini
N1 - Funding Information:
∗We sincerely thank the editor Barkley Rosser for coordinating the review process. Anonymous reviews have helped improve this article’s quality and readability. We extend our sincere appreciation to the Research Management Office, Education Management Office, and Operations Management Office in the School of Business at Monash University (Sunway Campus) for their invaluable logistical support in conducting this multidisciplinary research project. Furthermore, the Campus Research Management at Monash University (Sunway Campus) provided excellent external research grant management support. We thank M. Murugappan, Rajamanickam Yuvaraj, Farid Motlaq, and Ashfak Habib for their valuable cooperation with this study. Comments from Mahendhiran Nair, Erik Kimbrough, Marco Janssen, Faruque Reza, Aamir Malik, Tong Boon Tang, and Nidal Kamel on earlier versions of the manuscript benefitted this article in various ways. Questions and constructive criticisms from participants in the International Association for the Study of the Commons (Canada) and the Canadian Economics Association conference (Canada) were particularly insightful.
Funding Information:
Fundamental Research Grant Scheme: FRGS/1/2018/SS05/MUSM/02/2. Fundamental Research Grant Scheme: FRGS/2/2013/SS07/MUSM/02/1. Social and Economic Transformation in Asia, Monash University (Sunway Campus): SG-8-13. Seed grant, School of Business, Monash University Malaysia: B-2-6-14. Jeffrey Cheah Travel Grant for Southeast Asia Studies at Harvard University (Sunway University): 2018.
Publisher Copyright:
© 2023 A. Sarker, W. C. Poon, S. Haque and G. Herath.
PY - 2023
Y1 - 2023
N2 - In non-neuroscience-based studies, economists demonstrate that humans make suboptimal economic contributions (between zero and the theoretical maximum) in collective-action scenarios. Using a neuroeconomics experiment that integrates economics and neuroscience, this study investigates why humans make such suboptimal economic contributions. In this study, 90 adult participants, divided into 15 smaller groups, collectively participated in a computer-based public goods game while wearing electroencephalography headsets that recorded their neural activities during the game. The results show that when participants modified institutional arrangements (such as face-to-face communication), their economic contributions increased, albeit suboptimally. Furthermore, simultaneously and suboptimally in the frontal and temporal lobes, the participants’ positive rationality and emotionality increased, whereas their negative rationality and emotionality decreased. We suggest that suboptimal rationality and emotionality may underlie suboptimal economic contributions. This study offers broad implications for collectively and sustainably managing local, regional, and global commons, including the atmosphere in which humans cause climate change.
AB - In non-neuroscience-based studies, economists demonstrate that humans make suboptimal economic contributions (between zero and the theoretical maximum) in collective-action scenarios. Using a neuroeconomics experiment that integrates economics and neuroscience, this study investigates why humans make such suboptimal economic contributions. In this study, 90 adult participants, divided into 15 smaller groups, collectively participated in a computer-based public goods game while wearing electroencephalography headsets that recorded their neural activities during the game. The results show that when participants modified institutional arrangements (such as face-to-face communication), their economic contributions increased, albeit suboptimally. Furthermore, simultaneously and suboptimally in the frontal and temporal lobes, the participants’ positive rationality and emotionality increased, whereas their negative rationality and emotionality decreased. We suggest that suboptimal rationality and emotionality may underlie suboptimal economic contributions. This study offers broad implications for collectively and sustainably managing local, regional, and global commons, including the atmosphere in which humans cause climate change.
KW - C12
KW - C71
KW - Commons
KW - institutional economics
KW - neuroeconomics JEL Codes: H41
KW - public goods
UR - http://www.scopus.com/inward/record.url?scp=85165060884&partnerID=8YFLogxK
U2 - 10.1561/105.00000169
DO - 10.1561/105.00000169
M3 - Article
AN - SCOPUS:85165060884
SN - 2326-6198
VL - 10
SP - 27
EP - 44
JO - Review of Behavioral Economics
JF - Review of Behavioral Economics
IS - 1
ER -