Losing money is more stressful than bribing! Our new Frontiers article explores the physiology of corrupt behavior

In our recently article published in “Frontiers in Behavioral Neuroscience“, we show that high emotional arousal is not solely associated to unethical economic behavior —such as tax evasion— as previous research had revealed. Instead, people get emotionally aroused also when making ethical choices if these choices imply the loss of monetary reward. In other words, it seems to be more stressful for someone to lose money than to make an unethical decision that causes a loss of money to others. This means that, in certain circumstances, our bodies reward unethical decisions in order to minimise the unpleasant feeling produced by decisions that cost us money. This behavior is inverted when the possibility of punishment exists. In that case corrupt decisions become more stressful than ethical ones.

These results support the existence of severe external control in economic transactions and bare important consequences for the political fight against corruption.

You can read the full article here

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New article published in PLoS ONE: Impact of Stock Market Structure on Intertrade Time and Price Dynamics

Originally published at: http://www.plosone.org/article/info%3Adoi%2F10.1371%2Fjournal.pone.0092885

A new article we have been working for some time with Dr. Plamen Ivanov was recently published in PLoS ONE. In the article we analyse times between consecutive transactions for a diverse group of stocks registered on the NYSE and NASDAQ markets, and we relate the dynamical properties of the intertrade times with those of the corresponding price fluctuations. We report that market structure strongly impacts the scale-invariant temporal organisation in the transaction timing of stocks, which we have observed to have long-range power-law correlations. Continue reading “New article published in PLoS ONE: Impact of Stock Market Structure on Intertrade Time and Price Dynamics”