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Imagine you are standing in the supermarket pondering the choice between two brands of biscuits. In any case, this shouldn’t be a big problem because you’ll choose the one that tastes best, or if you want to be economical, you’ll choose the one that is less expensive. But inside this seemingly inconsequential choice lies a lattice of intricate neural processes that neuroeconomics—the field of intersection of neuroscience, economics, and psychology—has been working to unravel.

For more than decades, human choices were thought to be solely influenced by self-interest, curiosity, and the desire to maximize benefit, as explained by traditional theory of economics. In another way, it was inferred that human beings are rational; it is anything but. Today, the field of neuroeconomics is emerging to explain how the brain responds to decision-making and how that mechanism occurs. How can the two completely different fields—Neuroscience and Economics—intersect, and what does that intersecting point imply? This article tries to explain this phenomenon.

What happens in the brain when we try to make a decision?

Understanding the structure and function of the brain is one of the most perplexing yet intriguing aspects of modern science. While most people know the general functions of the brain: memory, balance, perceptions, emotions, personality, and so on, very few people understand how the decision-making process happens in the brain, ranging from simpler customer choices to stupendous financial investments. The emergence of tools such as electroencephalography (EEG), magnetoencephalography (MEG), magnetic resonance imaging (MRI), positron emission tomography (PET), and functional near-infrared spectroscopy (fNIRS) provides crucial information about what happens in the brain when we make decisions. The discovery of the brain’s reward system props up our understanding along with these tools. Studies have found that the parts of the brain—the ventromedial prefrontal cortex (vmPFC) and the striatum—play crucial roles in decision-making. When making decisions, the ventromedial prefrontal cortex (vmPFC) helps evaluate and integrate various factors, such as costs and benefits. The striatum signals the brain’s expectation of reward, influencing whether we perceive the choice as satisfying or not. The perfect balance between these organs is what decision-making is about.

What drives us to make choices that align with our best interests, and why do we sometimes make decisions that go against them?

There is one famous theory behind its science called ‘reward error prediction theory’, which explains how the brain reacts when our expectations fall short or when our expectations exceed. It says that if we expected the profit from the investment, but unfortunately if we didn’t get it, the brain sends the negative signal. Conversely, when we receive a reward, i.e., our expectations meet or exceed, the brain releases a large amount of dopamine—a neurotransmitter linked with pleasure and reward—motivating us to make riskier or emotionally attacked decisions, such as buying luxury items despite having little money or chasing a stock market on high stakes.

What role do emotions play in decision-making?

Traditional economic theories treated the emotions as unwanted distractions; however, the emergence of neuroeconomics says that emotions play a huge role in the decision-making process. There is a peanut-sized organ called the amygdala on our brain whose functions are 100 times superior to its size, as it is the major processing center of emotions. For example, if you fear loss, the amygdala is triggered, and it stops you from making risky decisions. In one of the neuroeconomic studies, the participants were given the option of choosing between guaranteed small payouts and unguaranteed large payouts. Brain scans revealed that when participants chose guaranteed payouts, amygdala was more active. This explains the extent to which emotions play a role in decision-making, which looks miniscule but is, in reality, a much more complex phenomenon.

Why is the knowledge of neuroeconomics important among Nepali people and leaders?

Though not a single university in Nepal has neuroeconomics as their education program, it is fundamental to understand the concept of neuroeconomics in the context of Nepal. It is quite straightforward that many Nepalese people prioritize short-term benefits over long-term investments, like education and entrepreneurship. Understanding neuroeconomics can explain why people prioritize short-term benefits. In addition to this, Nepal has a plethora of breathtakingly rural parts, particularly in the midwestern and hilly areas. In such areas, decision-making is heavily influenced by traditions, social cohesion, and emotions; expanding the concept of neuroeconomics can increase the financial literacy among such groups of people. Today, the trend of involvement in the financial stock market is increasing among Nepali people. The neuroeconomics can explain why some people take unnecessary risks and why some people don’t. It can also explain why many Nepalese leaders are emotionally driven in implementing large financial-based projects and how it has affected the country’s economy.

Although neuroeconomics is still a young study, it has contributed much to economic theory and psychology. By expanding the knowledge of neural mechanisms on decision-making, simple or complex, it has explained behavioral choices, investment ideas, and financial-based policy. From cognitive biases to error prediction theory, and from the brain reward system to the amygdala's role on emotions, neuroeconomics offers new insights in the fields of cognitive science, psychology, and economics, which in the near future could explain everything from public policy to international relations. As a country navigating through economic disparities and financial illiteracy, neuroeconomics can certainly increase the financial literacy at the individual and national level and can also help the government make more rational policy. 

Ashish Banjara

St Xavier’s College, Maitighar

Nepal’s approach to mental health care is a tragic comedy of errors, a patchwork of underfunded programs, neglected policies, and insufficient services that barely scratch the surface of a growing crisis. Take Patan Mental Hospital, for example. It is the country’s only government-run mental hospital with as little as 50 beds, and is overburdened with the rising number of patients requiring inpatient care. As a result, individuals with severe conditions such as alcohol dependence syndrome, bipolar disorder, and schizophrenia are often turned away due to the lack of available beds. This is a dire situation, considering that mental health problems are becoming increasingly prevalent, particularly in the aftermath of the Covid-19 pandemic. In a country where mental illness is still widely viewed as a result of bad karma, and the mentally ill are often subjected to stigmatization and abuse, the state of psychiatric care is nothing short of a human rights disaster.

The main root of this problem is however glaringly obvious: Nepal’s mental health sector is woefully underfunded. Various health forums reveal approximately 30 percent of Nepal’s population suffers from some form of mental health issue, yet over 90 percent of these individuals lack access to appropriate mental health services. This disparity is further exacerbated by the government’s negligible investment in mental health, which receives less than one percent of the total healthcare budget. This lack of funding perpetuates a cycle of inadequate services, leading to dire consequences for those who genuinely need help the most. Similarly, it has also been estimated that the number of psychiatrists in the country is as low as 144 while the number of psychologists in private practice is estimated to be around 30. This statistic is not something to be proud of; it’s an indictment of a system that has consistently failed its most vulnerable citizens.

This is not just a healthcare crisis; it is a human rights crisis. The lack of political will, combined with deep-seated stigma and cultural attitudes amongst people, means that mental health issues will remain on the back burner. Even when action plans are proposed, they are often crippled by insufficient funding, inadequate infrastructure, and bureaucratic incompetence. The government’s neglect has condemned people to suffer in silence, with little to no hope of recovery or social rehabilitation. Without significant reform, Nepal’s mental health crisis will continue to be sidelined, leaving an already vulnerable population even further behind. 

So what can the government do? For starters, let’s talk about funding. Currently, Nepal invests a negligible portion of its budget to this critical area, a figure that pales in comparison to other expenditures. By reallocating even a modest percentage of the funds currently allocated as “miscellaneous expenses,” the government could make substantial progress in addressing the mental health crisis. This additional funding could support the recruitment of more mental health professionals, establishment of new treatment centers, and the expansion of important facilities like the Mental Hospital in Patan. 

But beyond throwing money at the problem, there’s a need for a cultural shift. Discussion among people about mental health must be normalized. The government, alongside NGOs and INGOs, must take charge in education and awareness programs that destigmatize mental illness and seek help. More importantly, every school should incorporate mental health education into their curriculum from primary classes itself. 

More importantly, the government should draft and implement a separate and comprehensive mental health policy that addresses the entire spectrum of mental health care, from prevention to treatment to rehabilitation. It should not only improve psychiatric services but also integrate mental health into primary care, so that a visit to the local health post includes a mental health screening as well.

Another area for improvement is the training and retention of mental health professionals. The government should provide scholarships or some sort of incentives for students pursuing psychiatry or psychology which will help reduce the shortage of professionals in the field as it motivates other students to join the field as well. Furthermore, providing continuous training for existing health care workers would ensure that they are able to handle mental health issues competently.

Similarly, in today’s hyper connected world, tele-psychiatry and online counseling services would be a game changer in a country where many people live in remote areas with limited access to transportation and health care facilities. The government or the concerned stakeholders should consider partnering with tech companies that are able to develop and promote these kinds of services, making mental health care more accessible to those who need it.

It is not too late to change our course. With the right investments, policies, and cultural shifts, our country can begin to address the mental health crisis that has been hiding in plain sight. After all, a nation’s true strength is measured not by the height of its tallest buildings but by the well-being of all its people.

Aishwarya Koirala

BA IIIrd Year

St Xavier’s College, Maitighar

Three weeks until exams and you’re all set to conquer that mountain of notes. But somehow the internet’s irresistible trap pulls you in. One minute, you’re telling yourself you’ll just check Instagram for a second, next, you’re deep into a Netflix binge and—poof! your prep time is gone. With just one day left, you skim through the entire syllabus, promising you’ll start early next time. But this cycle is like your persistent ex—it just won’t stop chasing you. Sounds familiar?

In today’s hyper-connected world, our phones have become like those sirens from Greek mythology. It is luring us into the digital Bermuda Triangle. Our notifications buzz, and before we know it, we're in this whirlpool of mindless scrolling. But let’s face it, we all know that watching viral cat videos or the maddening Tiktok trends, isn’t going to help us write our assignments or pass our exams. So, why do we keep diving into this self-sabotaging scroll-fest?

Here are a few reasons that spring to mind: Smartphones are designed in such a way, they are meant to be addictive. With every little notification, our brain’s reward system, which is driven by several neurotransmitters, releases a little hit of the ‘feel-good’ chemical called dopamine, the same chemical that makes gambling or drugs so alluring. Interestingly, as time goes by, the pleasure from these small dopamine hits can decline, which can turn into a need for more frequent stimulation to get the same level of pleasure. This creates a loop where we continue to scroll, not because it particularly makes us feel good, but because it helps us distract ourselves as a form of escapism. 

Also, most of us often have a tendency to believe that we can control our time spent on social media and will get back to our tasks shortly. This cognitive bias leads us to underestimating how much time we spent scrolling and overestimating our ability to manage it effectively. Another propensity is that we focus on immediate gratification over prioritizing long-term goals like academic achievements, which takes consistent effort and dedication and is mostly not very enjoyable as well. This need for instant gratification that we get from surfing social media with its bottomless bowls is more enticing than the gradual satisfaction that comes from doing significant tasks.

Now here’s the kicker, screen addiction isn’t just a harmless distraction. Much research has shown that excessive use of smartphones can severely hamper our focus and memory while also altering the volume and density of gray matter in our brain, which are crucial for processing information and cognitive functioning. When we are glued to our phone, our brain is on a constant dopamine drip, making it nearly impossible to concentrate. The result? You’re skimming through the entire syllabus at the last minute, and those solid study plans you made? They’re now just a faint memory.

There’s more. This silent epidemic doesn’t just wreck our grades; it’s also a stealthy assassin of our overall wellbeing. It has also been seen that excessive phone use is highly linked with anxiety, depression, insomnia, feeling of never-ending restlessness, the list goes on…. That constant need to check our phone is like a hamster wheel, making us feel mentally and emotionally exhausted, which prevents us from being productive and getting better results.

A willpower issue?

Some people might say, ‘Just stop doing that!’ But if we were to acknowledge it’s an addiction, that is like telling a smoker, ‘Hey, just quit smoking!’ Sure, it makes sense, but it doesn’t work. Relying on willpower alone is like bringing a butter knife to a sword fight.

So, how do we fix this compulsive overconsumption? Simple. Fight fire with fire. No pun intended!

There are technologies designed specifically to help us quit our tech addiction. Personally, I use an app called Opal, which has been a game-changer. It tracks our screen time and also blocks distracting sites for the next 24-hours when we reach a certain time limit, acting as a digital personal trainer for our brain. 

Turning off less important notifications is another smart move. Our phone doesn’t need to buzz every time someone likes our post or sends us a message or we get a new email. By silencing the noise, we can reset our focus and stay on track with our important tasks.

Another nifty trick is to use the Pomodoro Technique. It is a time management method, which helps to improve productivity and focus by breaking work into intervals, typically 25 minutes. Instead of working for just 25 minutes and taking a 5-minute break, we can try working for 50 minutes and then rewarding ourselves with a 10-minute break for better attention and efficiency. 

Additionally, we can designate certain areas in our house where gadgets are off-limits, like our study space or the dining table. This physical separation can help us reduce mindless checking. Avoid taking the phone to bed. It interferes with the sleep we need to function fully the next day. Instead, buying an alarm clock is a much better option. Lastly, digital detoxing is another way to mitigate the problem. We need to have a life outside of our screen. Dedicating two or three days a week to going screen-free and using that time connecting with friends or family in real life, enjoying nature, or getting into a new hobby can be a refreshing reset that can work wonders for our cognitive functioning. 

It is important to remember that there are people behind the screen, who are cashing in on our attention, hooking us to keep us distracted. So, we must take it upon ourselves to set boundaries and do better.

Aishwarya Koirala

BA IIIrd Year

St Xavier’s College, Maitighar

The Student Council of Thames International College (SCOTIC) organized an inter-college student meet titled ‘Dristi’ on Aug 9. The event brought together over 50 students from various Bachelor-level colleges across Kathmandu. It featured a public speaking and leadership seminar, as well as an educational summit where students from different institutions shared their experiences and perspectives on educational issues.

Participating colleges included Thames International College, Prime College, Kathmandu Model College (KMC), Kantipur College of Management and Information Technology (KCMIT), Presidential Graduate School, King’s College Nepal, The Westminster College, IIMS College, and Uniglobe College.

The event’s first major highlight was the Public Speaking Seminar, designed specifically for students in leadership roles. The seminar focused on enhancing communication and leadership skills, providing attendees with valuable insights and practical techniques to improve their public speaking abilities—essential for both academic and future professional success.

After the seminar, participants were divided into discussion groups focusing on key topics related to their academic and extracurricular experiences. Avenue 1 explored ‘Academic Affairs’, comparing traditional exam-based assessments with assignment-based evaluation methods. Avenue 2 examined the ‘Importance and Impact of Extracurricular Activities’, discussing how these activities influence student life. Each group engaged in robust discussions, sharing ideas and building networks with peers from other institutions. 

Following the group discussions, an Educational Summit was held where students presented their insights on the topics. The entire summit was documented, and the conclusions will be circulated as needed.

Thames International College’s Inter-College Student Meet was a resounding success, showcasing the benefits of collaborative learning and the importance of building connections across academic institutions. The event facilitated meaningful interactions and highlighted the value of interdisciplinary approaches in addressing contemporary challenges. The Student Council looks forward to continuing this tradition and enhancing student engagement in future editions.

Nirwan Maharjan

Thames International College