Group Effect and Its Influence on Economic Decision-making Based on Brain Evoked Potential Analysis

Abstract

To explore how group effect generates and how it influences individual’s economic decision-making from the two levels of psychological cognition and behavior choice, as well as the prerequisites for differentiating into two different effects, this study compares the individual different acceptance degree of fair/unfair offer from inside and outside the group in making economic decision through designing the model of ultimatum bargaining game based on decision-making neuroscience. What’s more, the study attempts to explore the preconditions of the two completely different phenomena of in-group preference and black sheep effect and uses ERP technology to find the cranial nerve basis of this effect so as to reveal the brain’s thinking process.