In studying the brain activity of test subjects as they decided to make either generous or selfish choices in range of circumstances, Caltech researchers found that a simple computational model could explain and understand altruistic behavior.
Financing is done in much more flexible and efficient ways today than it was 30 years ago due to innovations in financial economics. Recognizing this area's importance to both academia and society, Caltech is developing a curriculum around the study of finance.
It is often said that people who do not learn from history are doomed to repeat it. John P. O'Doherty, professor of psychology and director of the Caltech Brain Imaging Center, discusses our current understanding of how we learn from experience.
Investment magnate Warren Buffett has famously suggested that investors should try to "be fearful when others are greedy and greedy only when others are fearful." That turns out to be excellent advice, according to the results of a new study.