by Kabir Sehgal
2. Italo Calvino, Invisible Cities, Kindle ed. (Orlando, FL: Harcourt, 2012).
Chapter 1. It’s a Jungle Out There
1. William Whewell, History of the Inductive Sciences, vol. 2 (London: J. W. Parker, 1837), p. 185.
2. Adam Smith, The Wealth of Nations (New York: Knopf, 1991), p. 13.
3. Charles Darwin, The Origin of Species (Amherst, NY: Prometheus Books, 1991), pp. 47–48.
4. Richard L. Lesher and George J. Howick, Assessing Technology Transfer (Washington, DC: National Aeronautics and Space Administration, 1966), p. 9.
5. BBC, History of Life on Earth, retrieved March 3, 2013, from http://www.bbc.co.uk/nature/history_of_the_earth.
6. Darwin, The Origin of Species, pp. 1–20.
7. Paul D. Stewart, Galápagos: The Islands That Changed the World (New Haven, CT: Yale University Press, 2007), pp. 147–50.
8. National Oceanic and Atmospheric Administration, National Ocean Service Education, March 25, 2008, http://oceanservice.noaa.gov/education/kits/corals/media/supp_coral02bc.html.
9. E. M. Bik, “Composition and Function of the Human-Associated Microbiota,” Nutritional Reviews 67 (2009): S164–71.
10. Haim Ofek, Second Nature: Economic Origins of Human Evolution, Kindle ed. (Cambridge: Cambridge University Press, 2001), loc. 67.
11. Ian Sample, “With a Little Help from Your Friends You Can Live Longer,” Guardian, July 27, 2010, http://www.theguardian.com/lifeandstyle/2010/jul/27/friendship-relationships-good-health-study.
12. Robert W. Bauman, Microbiology (San Francisco: Pearson, 2006), pp. 85–86.
13. Victor Fet, “Kozo-Polyansky’s Life,” in Boris Mikhaylovich Kozo-Polyansky, Symbiogenesis: A New Principle of Evolution (Cambridge, MA: Harvard University Press, 2010).
14. Jeanna Bryner, “Dinosaur-Era Insects Frozen in Time During Oldest Pollination,” Live Science, May 14, 2012, retrieved March 3, 2013, from http://www.livescience.com/20304-amber-insects-oldest-pollination.html.
15. In evolutionary biology, the reproductive success (RS) has become known as the currency of natural selection. RS is determined by the number of offspring that an individual produces, and which survives to reproduce. Professor Carlos Valle points out that energy is a good proxy for RS. For example, the optimal foraging theory suggests that individuals use energy as currency and seek to maximize it.
16. William C. Burger, Flowers: How They Changed the World (Amherst, NY: Prometheus Books, 2006), pp. 81–90.
17. Adam Cole, “Honey, It’s Electric: Bees Sense Charge on Flowers,” NPR, February 22, 2013, retrieved March 3, 2013, from http://www.npr.org/2013/02/22/172611866/honey-its-electric-bees-sense-charge-on-flowers.
18. Bauman, Microbiology, pp. 141–63.
19. Jack Weatherford, The History of Money (New York: Three Rivers Press, 1997), p. 48.
20. Anahit Galstyan et al., “The Shade Avoidance Syndrome in Arabidopsis: A Fundamental Role for Atypical Basic Helix-loop-helix Proteins as Transcriptional Cofactors,” Plant Journal 66, no. 2 (2011): 258–67.
21. Mark Kurlansky, Salt (New York: Penguin, 2002), pp. 10–11.
22. Karl Marx, Capital, vol. 1 (1887), online ed. (Progress Publishers, n.d.), https://www.marxists.org/archive/marx/works/1867-c1/ch04.htm.
23. Lynne McTaggart, The Bond (New York: Free Press, 2011), pp. xx–xxi.
24. John A. Moore, Heredity and Development, 2nd ed. (Washington, DC: National Academies Press, 1972), pp. 7–18.
25. Charles Darwin, The Descent of Man (New York: Appleton, 1871), p. 79.
26. Robert Axelrod, The Evolution of Cooperation, Kindle ed. (New York: Perseus Book Group, 2009), pp. 7–9.
27. Ibid., pp. 50–51.
28. Ibid., pp. 40–41.
29. Ibid., p. 123.
30. Richard Dawkins, The Selfish Gene (Oxford: Oxford University Press, 1989), p. 229.
31. Ibid., p. 203.
32. Ludwig von Mises, Human Action: A Treatise on Economics (San Francisco: Fox & Wilkes, 1996), http://mises.org/Books/humanaction.pdf, p. 144.
33. McTaggart, The Bond, p. 80.
34. Ibid.
35. Bernadette Boden-Albala et al., “Social Isolation and Outcomes Post Stroke,” Neurology 64, no. 11 (2005): 1888–92.
36. McTaggart, The Bond, p. 80; Julianne Holt-Lunstad, Timothy B. Smith, and J. Bradley Layton, “Social Relationships and Mortality Risk: A Meta-analytic Review,” PLOS Medicine 7, no. 7 (July 10, 2010), http://www.plosmedicine.org/article/info:doi/10.1371/journal.pmed.1000316.
37. Dawkins, The Selfish Gene, p. 258.
38. Susanne Shultz, Christopher Opie, and Quentin D. Atkinson, “Stepwise Evolution of Stable Sociality in Primates,” Nature 479 (November 10, 2011): 219–22.
39. Celia W. Dugger and John Noble Wilford, “New Hominid Species Discovered in South Africa,” New York Times, April 8, 2010, retrieved March 4, 2013, from http://www.nytimes.com/2010/04/09/science/09fossil.html?pagewanted=all&_r=0.
40. Martin Reuter et al., “Investigating the Genetic Basis of Altruism: The Role of the COMT Val158Met Polymorphism,” Social Cognitive and Affective Neuroscience (2010), http://scan.oxfordjournals.org/content/early/2010/10/28/scan.nsq083.full.
41. “Researchers in Bonn Find an ‘Altruism Gene,’ ” press release, University of Bonn, Bonn, Germany, http://www3.uni-bonn.de/Press-releases/researchers-in-bonn-find-an-201caltruism-gene201c.
42. Adam L. Penenberg, “Social Networking Affects Brains like Falling in Love,” Fast Company, July 1, 2010, http://www.fastcompany.com/1659062/social-networking-affects-brains-falling-love.
43. Mark Honigsbaum, “Oxytocin: Could the ‘Trust Hormone’ Rebond Our Troubled World?,” Guardian, August 20, 2011, http://www.guardian.co.uk/science/2011/aug/21/oxytocin-zak-neuroscience-trust-hormone.
44. Zack Lynch, The Neuro Revolution (New York: St. Martin’s Press, 2009), pp. 97–108.
45. C. H. Declerck, Christopher Boone, and Toko Kiyonari, “The Effect of Oxytocin on Cooperation in a Prisoner’s Dilemma Depends on the Social Context and a Person’s Social Value Orientation,” Social Cognitive and Affective Neuroscience (2013), http://www.ncbi.nlm.nih.gov/pubmed/23588271.
46. Axelrod, The Evolution of Cooperation, p. 94.
47. Peter T. Boag and Peter R. Grant, “Intense Natural Selection in a Population of Darwin’s Finches (Geospizinae) in the Galapagos,” in Kathleen Donohue, ed., Darwin’s Finches (Chicago: University of Chicago Press, 2011), p. 286.
48. Martin H. Wikelski, “Darwin’s Finches,” eLS (2001): 3–4.
49. Smith, The Wealth of Nations, pp. 4–7.
50. Ann Gibbons, The First Human (New York: Anchor Books, 2007), pp. 36–39.
51. British Museum, “A History of the World in 100 Objects: Olduvai Handaxe,” n.d., retrieved March 18, 2013, from http://www.bbc.co.uk/ahistoryoftheworld/about/transcripts/episode3.
52. Francisco J. Ayala, Am I a Monkey? (Baltimore: Johns Hopkins University Press, 2010), pp. 3–10.
53. Mises, Human Action, p. 176.
54. John F. Hoffecker, Landscape of the Mind (New York: Columbia University Press, 2011), pp. 15–66.
55. Ofek, Second Nature, locs. 1499–1503.
56. Michael Balter, “On the Origin of Art and Symbolism,” Science 323 (February 6, 2009): 709–11, http://www.sciencemag.org/content/323/5915/709.full?ijkey=PVlAWrnJDMlhE&keytype=ref&siteid=sci.
57. Marek Kohn and Steven Mithen, “Handaxes: Products of Sexual Selection?,” Antiquity 73 (1999): 518–26.
58. Catherine de Lange, “Our Ancestors Had to Grow Bigger Brains to Make Axes,” New Scientist, November 4, 2010, retrieved March 18, 2013, from http://www.newscientist.com/article/dn19677-our-ancestors-had-to-grow-bigger-brains-to-make-axes.html.
59. Peter N. Peregrine and Melvin Ember, eds., Encyclopedia of Prehistory, vol. 1 (New York: Springer, 2001), pp. 3–7.
60. Jonathan Kingdon, Self-Made Man (New York: John Wiley, 1993), pp. 47–49.
61. Maev Kennedy, “Invention of Cooking Made Having a Bigg
er Brain an Asset for Humans,” Guardian, October 22, 2012, http://www.theguardian.com/science/2012/oct/22/cooking-supports-increased-human-brain-power.
62. Ferris Jabr, “Does Thinking Really Hard Burn More Calories?,” Scientific American, July 18, 2012, http://www.scientificamerican.com/article.cfm?id=thinking-hard-calories.
63. “Bigger Brains: Complex Brains for a Complex World,” Smithsonian National Museum of Natural History, n.d., retrieved March 20, 2013, from http://humanorigins.si.edu/human-characteristics/brains.
64. “Glacial and Interglacial Cycles of the Pleistocene,” Encyclopaedia Britannica, retrieved March 20, 2013, from http://www.britannica.com/EBchecked/topic/121632/climate-change/275791/Glacial-and-interglacial-cycles-of-the-Pleistocene.
65. Stanley I. Greenspan, The First Idea (Cambridge, MA: Da Capo Press, 2004), pp. 169–71.
66. Hoffecker, Landscape of the Mind, pp. 3–8.
67. R. Dale Guthrie, The Nature of Paleolithic Art (Chicago: University of Chicago Press, 2005), pp. 7–26, 335–39.
68. Hoffecker, Landscape of the Mind, p. x.
69. Ibid., pp. 5–6.
70. Ibid., p. 77.
Chapter 2. A Piece of My Mind
1. Alan Greenspan, Age of Turbulence (New York: Penguin, 2008), p. 47.
2. Daniel Kahneman, Thinking, Fast and Slow, Kindle ed. (New York: Farrar, Straus & Giroux, 2011), p. 288.
3. Adam Levy, “Brain Scans Show Link Between Lust for Sex and Money,” Bloomberg, February 1, 2006.
4. Michael S. Sweeney, Brain: The Complete Mind (Washington, DC: National Geographic Society, 2009), pp. 1–2.
5. Conor Dougherty and Kelly Evans, “Economy in Worst Fall Since ’82,” Wall Street Journal, February 28, 2009.
6. Alan Greenspan, The Map and the Territory (New York: Penguin, 2013), p. 7.
7. Ibid., p. 8.
8. Ibid., p. 3.
9. Gregory S. Berns et al., “Predictability Modulates Human Brain Response to Reward,” Journal of Neuroscience 21, no. 8 (2001): 2793–98.
10. Jason Zweig, Your Money and Your Brain, Kindle ed. (New York: Simon & Schuster, 2007), loc. 2995.
11. Walter A. Friedman, Fortune Tellers (Princeton, NJ: Princeton University Press, 2014), p. iv.
12. Ibid., p. 6.
13. Ibid., p. 8.
14. Efficient markets theory was an application of rational expectations. See Thomas J. Sargent, “Rational Expectations,” The Concise Encyclopedia of Economics, n.d., retrieved May 3, 2014, from http://www.econlib.org/library/Enc/RationalExpectations.html.
15. Justin Fox, The Myth of the Rational Market (New York: HarperCollins, 2009), pp. xiv–xv.
16. Ibid., pp. xiii–xiv.
17. Ibid., pp. 47–57.
18. Zweig, Your Money and Your Brain, locs. 98–100.
19. Professor Dilip Soman raises an interesting point: When we make our own financial decisions, we may allow emotions to play a factor without realizing it. But when others, for example a wealth manager, make financial decisions for us, they may be more dispassionate about it. In this case, Markowitz may have benefited from a wealth adviser who could have put aside emotions when allocating the money.
20. Toshio Yamagishi et al., “In Search of Homo economicus,” Psychological Science (2014), http://www.ncbi.nlm.nih.gov/pubmed/25037961?dopt=Abstract.
21. Peter Coy, “What Good Are Economists Anyway?,” Bloomberg Businessweek, April 15, 2009.
22. “Why Economists Failed to Predict the Financial Crisis,” Knowledge@Wharton, May 13, 2009, retrieved May 5, 2014, from http://knowledge.wharton.upenn.edu/article/why-economists-failed-to-predict-the-financial-crisis.
23. David Colander et al., “The Financial Crisis and the Systemic Failure of Academic Economics,” March 9, 2009, Social Science Research Network, http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1355882.
24. Cited in Fox, The Myth of the Rational Market, p. xi.
25. Cited in Greenspan, The Map and the Territory, p. 8.
26. Ibid., p. 14.
27. Kahneman, Thinking, Fast and Slow, p. 211.
28. Ibid., pp. 7–8.
29. Michael R. Cunningham, “Weather, Mood, and Helping Behavior: Quasi Experiments with the Sunshine Samaritan,” Journal of Personality and Social Psychology 37, no. 11 (1979): 1947–56.
30. David Hirshleifer and Tyler Shumway, “Good Day Sunshine: Stock Returns and the Weather,” Journal of Finance 58, no. 3 (2003): 1009–32.
31. Leonard Mlodinow, Subliminal, Kindle ed. (New York: Random House, 2012), pp. 23–24.
32. Adrian C. North, “The Effect of Background Music on the Taste of Wine,” British Journal of Psychology 103, no. 3 (2012): 293–301.
33. Kahneman, Thinking, Fast and Slow, pp. 130–31.
34. Ibid., p. 216.
35. Ibid., pp. 212–15.
36. David F. Swensen, Unconventional Success, Kindle ed. (New York: Simon & Schuster, 2005), locs. 3532–37.
37. Kahneman, Thinking, Fast and Slow, p. 216.
38. George A. Akerlof and Robert J. Shiller, Animal Spirits (Princeton, NJ: Princeton University Press, 2009).
39. Markus K. Brunnermeier and Christian Julliard, “Money Illusion and Housing Frenzies,” Review of Financial Studies 21, no. 1 (2008): 135–80.
40. Carl R. Chena, Peter P. Lung, and F. Albert Wang, “Stock Market Mispricing: Money Illusion or Resale Option?,” Journal of Financial and Quantitative Analysis 44, no. 5 (2009): 1125–47.
41. Louis N. Christofides and Amy Chen Peng, “The Determinants of Major Provisions in Union Contracts: Duration, Indexation, and Non-Contingent Wage Adjustment,” unpublished paper, University of Cyprus, 2004.
42. Bernd Weber et al., “The Medial Prefrontal Cortex Exhibits Money Illusion,” Proceedings of the National Academy of Sciences 106, no. 13 (2009): 5025–28.
43. Daniel Kahneman and Amos Tversky, “Prospect Theory: An Analysis of Decision Under Risk,” Econometrica 47 no. 2 (1979): 263–92.
44. Daniel Kahneman, “Daniel Kahneman—Biographical,” 2002, retrieved April 27, 2013, from http://www.nobelprize.org/nobel_prizes/economics/laureates/2002/kahneman-autobio.html.
45. Mebane Faber, “Dow 300 Point Days and Volatility Clustering,” MEB Faber Research, August 7, 2008, retrieved May 30, 2014, from http://mebfaber.com/2008/08/07/dow-300-point-days-and-volatility-clustering.
46. Gary Belsky and Thomas Gilovich, Why Smart People Make Big Money Mistakes (New York: Simon & Schuster, 2009), pp. 48–49.
47. Stephen J. Brown and Onno W. Steenbeek, “Doubling: Nick Leeson’s Trading Strategy,” Pacific-Basin Finance Journal 9, no. 2 (2001): 83–99.
48. Paul Pierson, “The New Politics of the Welfare State,” World Politics 48, no. 2 (1996): 143–79.
49. Devin G. Pope and Maurice E. Schweitzer, “Is Tiger Woods Loss Averse? Persistent Bias in the Face of Experience, Competition, and High Stakes,” American Economic Review 101 (2011): 129–57.
50. Christopher Trepel, Craig R. Fox, and Russell A. Poldrack, “Prospect Theory on the Brain? Toward a Cognitive Neuroscience of Decision Under Risk,” Cognitive Brain Research (2005): 34–50.
51. Benedetto De Martino, Colin F. Camerer, and Ralph Adolphs, “Amygdala Damage Eliminates Monetary Loss Aversion,” Proceedings of the National Academy of Sciences 107, no. 8 (2010): 3788–92.
52. Katie Moisse, “What Happens in the Amygdala… Damage to Brain’s Decision-Making Area May Encourage Dicey Gambles,” Scientific American, February 9, 2010.
53. Richard H. Thaler, “Mental Accounting Matters,” Journal of Behavioral Decision Making 12 (1999): 183–206.
54. Mathias Pessiglione et al., “How the Brain Translates Money into Force: A Neuroimaging Study of Subliminal Motivation,” Science 316 (2007): 904–6.
55. Xinyue Zhou, Kathleen D. Vohs, and Roy F. Baumeister, “The Symbolic Power of Money,” Psychological Science 20, no. 6 (2009): 700–706.
56. Mathias Pessiglione, “How the Brain Translates Money into Force: A Neuro-imaging Study of Subl
iminal Motivation,” SCitizen, May 24, 2007.
57. J. F. Stein and Catherine Stoodley, Neuroscience (New York: Wiley, 2006), pp. 36–37.
58. Sandra Blakeslee, “Brain Experts Now Follow the Money,” New York Times, June 17, 2003.
59. Cristina Becchio et al., “How the Brain Responds to the Destruction of Money,” Journal of Neuroscience, Psychology, and Economics 4, no. 1 (2011): 1–10.
60. Ibid.
61. Dean Buonomano, Brain Bugs (New York: Norton, 2011), pp. 19–46.
62. David Linden, The Accidental Mind (Cambridge, MA: Belknap Press of Harvard University Press, 2007), pp. 28–32.
63. Don Ross, “Introduction to Neuroeconomics: Neural Information Processing,” Society for Neuroeconomics, n.d., retrieved April 27, 2013, from http://www.neuroeconomics.org/teaching/course-introduction-to-neuroeconomics-ec-490-syllabus-lectures/EC%20490%20lecture%203%20neural%20information%20processing.pdf/at_download/file.
64. Buonomano, Brain Bugs, pp. 19–46.
65. Stanley I. Greenspan, The First Idea (Cambridge, MA: Da Capo Press, 2004), pp. 24–27.
66. Ibid.
67. Brian Knutson et al., “Anticipation of Monetary Reward Selectively Recruits Nucleus Accumbens,” Journal of Neuroscience 21 (2001): RC159.
68. Zweig, Your Money and Your Brain, loc. 729.
69. Hans C. Breiter et al., “Acute Effects of Cocaine on Human Brain Activity and Emotion,” Neuron 19, no. 3 (1997): 591–611; Patricia Wen, “An Addictive Thrill: MGH Study Finds Gambling, Cocaine Affect Same Region of Brain,” Boston Globe, May 24, 2001, p. A.1.
70. Zweig, Your Money and Your Brain, loc. 143.
71. Adam Levy, “Mapping the Trader’s Brain,” Bloomberg Markets, February 1, 2006.
72. Alan G. Sanfey et al., “The Neural Basis of Economic Decision-Making in the Ultimatum Game,” Science 300 (2003): 1755–58.
73. Zweig, Your Money and Your Brain, loc. 3890.
74. Sanfey et al., “The Neural Basis of Economic Decision-Making in the Ultimatum Game.”
75. Brian Knutson, “Emotion Is Peripheral,” Edge, January 15, 2004, retrieved May 15, 2014, from http://edge.org/print/response-detail/25466.
76. Brian Knutson et al., “Distributed Neural Representation of Expected Value,” Journal of Neuroscience 25, no. 19 (2005): 4806–12.
