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Psychophysiological economics
Psychophysiological economics is a field of study focused on the assessment and evaluation of psychological and physiological events as factors shaping consumer economic behavior.〔Grable, J.E. (2013). Psychophysiological economics: Introducing an emerging field of study. ''Journal of Financial Service Professionals, 67''(5), 16-18〕 Psychophysiological economists believe that behavior and cognitive processing are indivisible and that behavioral, cognitive, and physiological tools and techniques can be combined to create interventions that improve the economic well-being of consumers.
Psychophysiological economics differs from behavioral economics by focusing on direct measures of physiological change and observational data, in addition to attitudinal measurement. Psychophysiological economics also differs from functional magnetic resonance imaging, which is typically applied exclusively to the study of brain activity. Psychophysiological economics emphasizes the role of the peripheral nervous system as it relates to shaping economic behavior.
The peripheral nervous system includes the spinal and cranial nerves. Of specific relevance is the Autonomic Nervous System (ANS). The ANS regulates glands and other internal organs (visceral structures). Visceral structures control involuntary physiological activities and behavior. Psychophysiological economics researchers directly measure the sympathetic nervous system as a person responds to stressor within the environment.
==Assumptions==
Three assumptions provide the basis for psychophysiological economics studies. First, stress shapes how consumers react, both physically and mentally, to economic challenges (i.e., stressors). Second, stress cannot be evaluated and assessed easily using traditional observational methods. Third, both eustress (positive stress) and distress (negative stress) can alter behavior by causing changes in a person’s visceral structures. These changes occur involuntarily, but the underlying cause can be measured and evaluated.〔Grable, J.E., Heo, W., & Rabbani, A. (2014). Financial anxiety, physiological arousal, and planning intention. ''Journal of Financial Therapy, 5''(2), 1-18〕
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