Dr. Richard Thayer is a Prof. at the University of Chicago and recipient of the 2017 Nobel Prize in Economics for his work in the field of behavioral economics, which integrates economics and psychology. Dr. Thayer incorporated psychologically realistic assumptions into analysis of economic decision-making. By exploring the consequences of limited rationality, social preferences, and lack of self-control, he has shown how these human traits systematically affect individual decisions as well as market outcomes.
Limited rationality: Thayer developed the theory of mental accounting, explaining how people simplify financial decision-making by creating separate accounts in their minds, focusing on the narrow impact of each individual decision rather than its overall effect.
Social preferences: Thayer's theoretical and experimental research on fairness has been influential. Thayer and his colleagues devised the dictator game, an experimental tool that has been used in numerous studies to measure attitudes to fairness in different groups of people around the world.
Lack of self-control: Thayer has also shed new light on the old observation that New Year's resolutions can be hard to keep. He showed how to analyze self-control problems using a planner-doer model, which is similar to the frameworks psychologists and neuroscientists now use to describe the internal tension between long-term planning and short-term doing. Succumbing to short term temptation is an important reason why our plans to save for old age, or make healthier lifestyle choices, often fail. In his applied work, Thayer demonstrated how nudging – a term he coined – may help people exercise better self-control when saving for a pension, as well in other contexts.
How the amygdala ties in
Emotions come from that ancient part of our brain responsible for survival called the amygdala. It is associated with emotions of fear and aggression and responsible for the Fight or Flight response, a vital component of survival. The same impulses that are sent to the amygdala in the emotional center of the brain are also sent to the rational center—the cerebral or prefrontal cortex. An impulse sent to the amygdala takes 12 milliseconds to arrive. However, it takes 40 milliseconds for the impulse to get to the cortex. Forty milliseconds is fast, but it is 3.5 times slower than the impulse that has gone to our amygdala. This is why we feel before we think.
These emotions sacrifice accuracy for speed, examples of emotions working to mess up our plans. For instance, evidence shows that the amygdala, which has been traditionally considered as a brain structure responsible for emotions, is in fact responsible for both affective and cognitive processing and plays an essential role in decision making. Second, an important number of studies show that brain damage in affective structures (e.g., the amygdala) have detrimental consequences in rational behavior. For instance, patients with amygdala damage experience a dramatically lower level of loss aversion than healthy people. Finally, signals from affective centers in the brain influence cognitive structures even before the decision-making process consciously occurs.
I have been coaching for over twenty years and have helped over a thousand clients transform their lives. I have figured out what you need to do to help your amygdala stay calm, so you can move forward as you’d like to, without fear.
Because the amygdala can not distinguish the difference between real threats and ones that are merely imagined, quite often it gives us a “false” alarm, knowing as an Amygdala Hijack. So when a false alarm rings in our amygdala it triggers a “Fight or Flight” response, which in turn shuts down the motivational side of our brain. This is why 90% of our daily performance is determined by your habits. Anything unrelated to our “immediate survival” becomes irrelevant, draining away our plans of action and goals. In your sessions, we will discover what responses your brain has and retrain your brain to live your best life. This is how Dr. Hyong's coaching will help you break your bad habits fast!
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