Neuroeconomist Paul J. Zak on Markets and the "Molecule of Love"

"Markets are pro-social. Markets are about serving the needs of another—that is innately virtuous," says Paul J. Zak, professor of Economics at Claremont Graduate University.

Zak is the founding Director of the Center for Neuroeconomics Studies at Claremont and is credited with the first published use of the term neuroeconomics, a new discipline that integrates neuroscience and economics. He describes neuroeconomics as the "brain basis for decision-making" or simply put, "It's really about why people make bad decisions regarding money."

In 2004, Zak's lab discovered that the chemnical oxytocin (best known for inducing labor in women and giving us that warm fuzzy feeling when we hug someone) allows us to determine whom to trust in situations that require exchange. That's the same trust that makes trade possible and underpins modern civilizations and economies.

Zak discusses his oxytocin argument, presented in Moral Markets: The Critical Role of Values in the Economy and why even the most untrustworthy among us leads to a healthy and moral marketplace.

Approximately 10 minutes long. Produced by Hawk Jensen with Alex Manning as director of photography.

Category:

Science & Technology

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• moral molecule
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• claremont college
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• moral market

[XCritonX]

Non reciprocal takers: don't call them bastards, call them politicians.

And you wounder have the bastards got in charge!

[TrueEmergence]

This is a very brilliant study, I'm happy reason TV approached it.

[serolog2]

Dr. Zak's research has very dangerous implications smh

[CernelJoson]

@mesmeriffic Having a monopoly imposing regulations sidesteps his whole point about evolutionary environments. No one knows in advance what the correct rules are for all people, which is why leaving the production of rules to the market would allow for consumer sovereignty and the evolutionary process. Government regulations and central planning are to economics what creationism is to biology.

[Pronesniper]

@mesmeriffic No, a Free Market can contain a mechanism for punishing non-reciprocating individuals. There just aren't many around right now because governments have monopolized punishing people.

Take Ebay for instance, if a seller does an unsatisfactory job (or just steals your money) then they can be given a bad review. If a seller gets enough of those, then they will be put out of business.

[mesmeriffic]

Zak states we need mechanisms in a modern economy to punish and protect against these non reciprocating individuals. This is regulation. The Walmart clerk and woman at the laundry are regulated from stealing your money through law. Oversight in the form of the Better Business Bureau and Securities and Exchange Commission is also in place to catch these non reciprocating individuals.

A purely free market lacks these mechanisms.

[Esoparagon]

How can I become a neuroeconomist?

[Wormtail81]

Is it possible to /really/ link these substances conclusively to different behaviors and impulses in such a specific way?

[marianiiina]

that... stare

[chuckarama451]

What the... This is a real field of study and research? Very interesting stuff. You botched the spelling of 'economist' in the title, btw.

[DominationCorp]

if you thought this was interesting YOU OWE IT TO YOURSELF to watch a BBC program called The "Trap: What Happened to Our Dream of Freedom". its available on google video and you tube.