Brains and Bubbles
Thursday, September 16, 2010
12:00 pm - 1:30 pm
Paul J. Zak, Ph.D.
Center for Neuroeconomic Studies, Claremont University
Chairs: Steve Sapra, CFA & Dan Pomerantz, CFA
An Applied Behavioral Finance Group Event
The increased calls for regulation of asset markets following repeated boom-bust cycles have focused on market structures that are purported to cause financial bubbles. This presentation discusses whether or not there are physiologic factors that cause bubbles. Two leading theories of bubble formation were tested, irrational exuberance and inexperience, in a laboratory asset market. Intervening in brain activity shows that a lack of learning is a potent cause of market bubbles. Applications to managing traders are then presented.
Paul J. Zak is Professor of Economics and Department Chair, as well as the founding Director of the Center for Neuroeconomics Studies at Claremont Graduate University. Dr. Zak also serves as Professor of Neurology at Loma Linda University Medical Center, and is a Senior Researcher at UCLA. He has degrees in mathematics and economics from San Diego State University, a Ph.D. in economics from University of Pennsylvania, and post-doctoral training in neuroimaging from Harvard. His new book “Moral Markets: The Critical Role of Values in the Economy” appeared in 2008 from Princeton University Press. Professor Zak is credited with the first published use of the term "neuroeconomics" and has been a vanguard in this new discipline that integrates neuroscience and economics. He organized and administers the first doctoral program in neuroeconomics in the world at Claremont Graduate University. Dr. Zak's lab discovered in 2004 that an ancient chemical in our brains, oxytocin, allows us to determine who to trust. This knowledge is being used to understand the basis for modern civilizations and modern economies, improve negotiations, and treat patients with neurologic and psychiatric disorders.
CFALA Members: $20.00
Time: 12:00 pm - 1:30 pm, Lunch
Location: Omni Los Angeles
251 South Olive Street
Los Angeles, CA 90071
For directions call hotel: (213) 617-3300
Event parking at the Omni $12.00
Methods of payment accepted: Visa/Mastercard, American Express and Discover. If you prefer to pay by check please register online and select "purchase order" as your payment option and enter your last name as the purchase order number. Mail check to: CFA Society of Los Angeles, 350 S. Grand Ave, Suite 1680, Los Angeles CA 90071.
*Credit card payments will only be accepted through the secure online registration, and not by phone or email.