Hormones and Economic Behavior

Book excerpt: Behavioral correlates of hormones, emphasized by psychologists, have captured the attention of economists in the past years. Behavioral economists, in particular, have investigated the possible roles of hormones on economic decision making and behavior as well as social preferences and cognitive abilities. Testosterone, oxytocin, dopamine, serotonin and stress hormones are the foremost studied ones in economic contexts. Yet, the results are mixed and the relationship between hormones and economic behavior is under-investigated to this date. Hormone levels are measurable and manipulatable (e.g. activate, de-activate, block). The fact that the behavioral economics also employs experimental methodology makes it possible to observe both correlational and causal relationships between hormones and economic behavior. Since numerous environmental, social and biological factors interact with hormone fluctuations, capturing the true impacts of hormones on decisions and behavior is challenging. Manipulating hormone levels in the body is a method that is used to tackle this issue. Such studies compare observed behaviors of hormones or placebo administrated participants to determine causal relationships. This Research Topic welcomes the studies on the direct or indirect correlates of hormones on economic behavior and decision making to create new insights on the economic consequences of endocrine activity.