How can eye tracking and other non-invasive measures of physiology inform experiments in finance?

Advances in technology allow researchers to track physiological activity and to offer insights regarding the cognitive and emotional processes involved in individuals’ behavior. In this chapter, we suggest the potential merit of incorporating eye-tracking and other noninvasive measures of physiology in experimental finance research. To this end, we first discuss potential measures: eye-tracking, skin-conductance, heart-rate, brain activity via fMRI or EEG, and face reader software or facial EMG. Thereafter, we discuss how incorporating these measures benefited the experimental design of some existing literature in Finance. Measuring physiology has the potential to shed new light on existing theories, behavioral models, examine attentional biases and emotional responses and to learn more about individual differences that may affect
financial behavior