Neuroeconomics How Executives Think

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Back in the tube, I was winning, with my earnings up to $120 at one point—a 20 percent increase. Then came a disastrous final few rounds of betting where my luck shifted and my portfolio tumbled in a matter of minutes to a mere $25.

The scans showed that my brain was not happy about these losses. A more precise assessment will come in a few weeks when my results and scans have been analyzed.

In real life I would have stopped at about $50 and held onto my money, since the original $100 was not mine, and I was still ahead unless I hit zero (which would cause the game to stop).

But in the tube, I was forced to continue, a form of subtle torture that is not unlike what happens when a stock crashes and there is nothing to be done—except to keep it in the hope it will go back up, or sell at a loss.

My midbrain is probably lighting up now even thinking about this hypothetical decision, though I'm not sure if knowing my neural patterns will make the choice any easier.

It might, however, help economists one day understand why I dumped that tech company stock back in the 1980s—which, by the way, turned out to be a good decision since the company later tanked.

Note: These tests were conducted as research for a book I'm writing, tentatively titled Experimental Man: One Man's Intimate Journey Inside Himself, Cell by Cell. For the book I'm taking high-tech exams of my genes, brain, and body to investigate what can be found out about a person's health, behavior, and future.

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