September 30, 2011 - New insights in brain science suggest that we are hard-wired for altruism and trust—even among strangers. Neuroeconomist Paul Zak discusses the hormone oxytocin and how it affects our interaction with strangers.

Nations where trust is high have effective governments, very tight social structures, and better interactions among people—they also have higher incomes and greater growth.

"Wizards have taken advantage of limited mental capacity," said Susana Martinez-Conde, who has coordinated the conference with Stephen Macknik after years of working alongside many of these magicians individually. "Our brain has a size and limited resources," he explains, "and must make decisions and shortcuts." It is for this economy of resources that our mind is full of holes and continuity where perhaps there is not, or make interpretations that may not be entirely correct, but that we use to get by. "We live surrounded by illusions," said Professor Peter Tse, one of the world's greatest experts in this field. In his view, these visual illusions are failure to show that everything we see is a construct of the brain. Determined to prove it, Tse projects an image that exposes to the audience for long seconds. "Has anyone noticed any change?" He asks. No one has appreciated at all, despite that it is a public "trained." A minute later, when I explained, we see that a window of the drawing has vanished from our sight, but at a slower speed so that our brain has not been able to register the change at the conscious level. The brain fills gaps, you lose the details because all that remains on the periphery is blurred and distracted with a song, a sound or an emotion. When the magician makes us laugh, for example, low attention momentarily and leaves us more vulnerable to deception for a few seconds. It also builds a false continuity between them and other events, although the changes readily apparent. [More] [Less]

"Our biology really tells us that, at our hearts, we're libertarians." So says Paul J. Zak, who spoke recently at Reason Foundation's annual Reason Weekend. Zak is the founding director of the Center for Neuroeconomics Studies at Claremont Graduate University and is credited with the first published use of the term "neuroeconomics," a new discipline that integrates neuroscience and economics. Zak discusses his "oxytocin argument," which he explores in the book Moral Markets: The Critical Role of Values in the Economy. In 2004, Zak's lab discovered that the chemical oxytocin (best known for inducing labor in women) allows us to determine whom to trust in situations that require exchange. That's the same trust that makes trade possible and underpins modern economies. Approximately 14 minutes-long. Filmed by Alex Manning and Paul Detrick; Editd by Hawk Jensen. [More] [Less]

Question: Can neuroeconomics work for individual businesses? Paul Zak: There are direct applications for organizational leaders on how you design an environment in which you can be both profitable, productive and have very fulfilled employees. So one way to do that is to lead by fear. So if your business is about exploiting individuals, taking advantage of people, making the biggest profits possible, this is the kind of "greed is good" model, then you kind of just want to whip people into doing things that are not fun, not interesting, it’s a nine to five job. If instead, the oxytocin research is correct, that individuals normally connect with each other, that’s our motive being as social creatures as human beings, and it means that if business is about service to others then business itself is a virtue – you are engaging in a virtuous activity by serving the needs of somebody else. When you do that, when you serve the needs of your employees, of your customers, you will induce oxytocin release and they will want to reciprocate. So can you say, “Customer loyalty?” This is how you do it. Okay, so if you can induce this oxytocin rich environment, if you can create this environment, then you have a way to drive productivity and drive individual satisfaction for being part of this organization. We have a purpose, we are here to serve others and we see this as some endeavor that we do together. When do it together we feel good about ourselves and about the people that we’re helping. So what this means is that in the old model, "greed is good," the measurement technique is: lead with fear. In the model, empower individuals to be the best they can be in an organization with purpose, you’re going to lead with love. So if you lead with love then you have this oxytocin environment that will motivate people going beyond, exceeding expectations and leading to delighting the customer, delighting the people around me. And delight is what we really want from a customer experience. [More] [Less]

It’s a fact. Increasing numbers of us are spending more time interacting with people online and less time face-to-face. According to the stats, people who use the internet for personal reasons spend less time on traditional social activities than those who don’t. And it’s not just for the young folks. One of the fastest growing demographics of social media users is seniors. In this episode, we're taking a deeper look at our love affair with social media. Question of the Week: Is social media a waste of time – or the best thing that’s ever happened? [More] [Less]

The concept of trust is in many ways the connective tissue of society—governing everything from our personal relationships to our common use of currency. Most, if not all, of the decisions we make every day rely on one form or another of trust. But what if our capacity for faith is simply the result of brain chemistry?Economic researchers are uncovering the chemical triggers in our brains that spark feelings of trust—and using their findings to better understand how markets work. Paul Zak, a professor of economics at Claremont Graduate University, has spent the past six years pioneering the new field of neuroeconomics, which could potentially explain the neurological mechanisms that result in poverty and prosperity.So far, Zak’s research has focused on oxytocin, a neurochemical known to flood a mother’s central nervous system during labor—in part to establish attachment for the child. Long thought limited to birth, research by Zak and others is now revealing that this chemical circulates in small doses in everyone, and is critical to creating and sustaining trust among people.In a series of tests based on giving or keeping money, Zak found that when someone demonstrates that they trust you, your body releases faint traces of oxytocin, which creates a [More] [Less]

Paul J. Zak is the founding Director of the Center for Neuroeconomics Studies and Professor of Economics at Claremont Graduate University. Zak also serves as Professor of Neurology at Loma Linda University Medical Center, and is a Senior Researcher at UCLA. Zak is credited with the first published use of the term “neuroeconomics” and has been a vanguard in this new discipline. He organized and administers the first doctoral program in neuroeconomics in the world. [More] [Less]

Skeptics Society Annual Conference 2005 - Brain, Mind, and Consciousness - California Institute of Technology, Pasadena, California

September 30, 2011 - New insights in brain science suggest that we are hard-wired for altruism and trust—even among strangers. Neuroeconomist Paul Zak discusses the hormone oxytocin and how it affects our interaction with strangers.

Romanian interview of Paul Zak regarding the current economics crisis.

Social networking releases the hormone oxytocin, which is associated with love and sexual satisfaction

Sam, as Agent Stiles, greets her and starts asking about Adam Benson, Jim Wylie and Steve Snyder, the guys who killed their wives. He asks about the toxicology exam on the perps, and the doctor halts for a moment, requesting a look at his badge again. Sam pulls it out, and the doctor examines it...then suddenly seems more interested in Sam. "There was one thing," she continues, explaining that she found a strange anomaly in their bloodwork: Alarmingly large amounts of oxytocin, the love hormone. Oxytocin is produced during childbirth, lactation...and sex. "You know how it feels when you first fall in love, the whole weak-in- the-knees, tattoo-you-on-my-chest thing? That's oxytocin," she explains. Sam smiles sheepishly at her. Of course, she continues, "then it fades and you're stuck in every relationship ever," she deadpans. "That, and a painful regimen of tattoo removal." She flirtatiously smiles back at him. Dean enters and introduces himself as Agent Murdoch. "Agent sounds so formal," he purrs, turning on the charm. "You can call me Dean." The doctor extends her hand in a brisk impersonal introduction, then returns her complete attention to Sam. "Can I help you with anything else?" she coos. Sam asks what would cause those high levels of oxytocin, and she replies, "Nothing I've ever seen." [More] [Less]

ResearchChannel.org - Paul J. Zak, PhD, is founding director of the Center for Neuroeconomics Studies at Claremont Dr. Paul J. Zak, director of the Center for Neuroeconomic Studies at Claremont Graduate University, talks about the role of oxytocin in forming social attachments and trust in humans.

Paul J. Zak is the founding Director of the Center for Neuroeconomics Studies and Professor of Economics at Claremont Graduate University. Zak also serves as Professor of Neurology at Loma Linda University Medical Center, and is a Senior Researcher at UCLA. Zak is credited with the first published use of the term “neuroeconomics” and has been a vanguard in this new discipline. He organized and administers the first doctoral program in neuroeconomics in the world. [More] [Less]

How much rational and moral behavior is hard-wired in the brain, as opposed to being learned? An assembly of leading researchers from around the world -- including Reinhard Selten, 1994 Nobel economics prize winner; Paul Zak, discoverer of the neuroeconomic effects of trust on the hormone oxytocin; and Leonardo Fogassi, co-discoverer of the mirror-neuron system in the brain -- focused on that question March 21-22, 2009 at the University of Richmond. The Symposium on Emotions, Natural Selection and Rationality celebrated the 250th anniversary of Adam Smith's book, [More] [Less]