Money and emotions

Formal economic theories of financial behaviour and prescriptive models of decision-making have little to say about the role of emotions. However, to even the most casual observer of economic life, markets are awash with emotions and emotions colour our daily decision-making.

In these video highlights from the 5th July 2012 Breakfast Briefing, Mark Fenton-O'Creevy, Professor of Organisational Behaviour, draws on findings from a three year study of traders’ and investors’ decision-making, and on a large survey conducted with the BBC of consumers’ emotional relationships with money. He considers not just the ways in which poor emotion management can lead to bad decisions for financiers, managers and members of the public, but also looks at the positive role emotions can play in effective decision-making.

Part 1: Emotions and the brain

Part 2: Managing emotions

Part 3: The research findings

Links

• iTunesU podcast on Money and Emotions
• BBC's Big Money Test