Testosterone Troubles
How much do hormones affect decision-making? A great deal, reports a brand new York Times article around the impact of testosterone levels on judgment and risk-taking. The content compares the connection between overconfidence and hormonal levels; particularly, that men’s “hubris might be associated with testosterone levels.”
The article also highlights the study of CGU alumnus Amos Nadler (PhD, Economics, 2021) and other neuroeconomists, including his mentor Professor Paul Zak, in examining the behaviour of stock traders and how testosterone levels affected their financial decisions in a simulation from the stock exchange. The end result? Bad.
“Men with boosted testosterone levels significantly overpriced assets … and … were slower to incorporate data about falling values into their trading decisions,” the article continues. Zak, who directs CGU’s Center for Neuroeconomics Studies, was thrilled to see coverage of his former student, whose intriguing research he proudly says “ended in my lab.”
Visit the Center’s web page to explore Zak’s work.
