Last updated on April 23, 2014 at 1:22 EDT

Latest Homeostasis Stories

2008-05-28 19:55:00

PASADENA, Calif. -- In the biblical story in which two women bring a baby to King Solomon, both claiming to be the mother, he suggests dividing the child so that each woman can have half. Solomon's proposed solution, meant to reveal the real mother, also illustrates an issue central to economics and moral philosophy: how to distribute goods fairly. Now, researchers at the California Institute of Technology have discovered that reason struggles with emotion to find equitable solutions, and...

2008-03-12 09:25:00

Researchers from EPFL and Caltech have made an important neurobiological discovery of how humans learn to predict risk.  The research, appearing in the March 12 issue of the Journal of Neuroscience, shed light on why certain kinds of risk, notably financial risk, are often underestimated, and whether abnormal behavior such as addiction (e.g. to gambling or drugs) could be caused by an erroneous evaluation of risk. Planning entails making predictions. In an uncertain environment, however,...

2005-08-31 18:15:00

The ups and downs of the stock market reflect investors' balance between greed and fear, goes an old saying. Until now, though, economists have not had a way to incorporate such emotions into their models of investors' strategies. However, in the September 1, 2005, issue of Neuron, Camelia M. Kuhnen and Brian Knutson of Stanford University report the identification of two key brain regions activated before people make risk-seeking versus risk-aversion investment mistakes. They said that...