Thinking like a trader selectively reduces individuals' loss aversion

Late Acute Stress Effects on Decision-Making: The Magnified Attraction to Immediate Gains in the Iowa Gambling Task

Previous literature indicates that the later phases of the acute stress response may promote poor decision-making, characterized by riskier choices and a likely inclination towards immediate reward-seeking. However, all studies addressing the effect of this phase have treated decisional capacity as a singular dimension, without analyzing the underlying processes under decision making. Employing the Value-Plus-Perseveration (VPP) RL model, based on Bayesian logic, this study aims to gain specific insights into how late phase of acute stress impacts the cognitive processes underpinning decision-making in the Iowa Gambling Task (IGT), deciphering whether, as expected, gains are processed in a magnified manner. Seventy-three participants were randomly assigned to two groups, stress (N = 35) and control (N = 38). A virtual version of The Trier Social Stress Test (TSST-VR) was employed as a laboratory stressor. Decision-making was evaluated 35minutes after the stressor onset, by means of the IGT. Results showed that stressed participants, in comparison to control group, displayed more perseverant and consistent decision-making, enhanced memory, and reinforcement learning capabilities, yet were guided by a greater attraction to decks offering immediate high gains. These results are analyzed with the understanding that in the IGT, short-term decisions focused on instant rewards are seen as counterproductive. This suggests that stress could limit the ability to switch to strategies that are more cautious and offer greater long-term benefits.

Surprising sounds influence risky decision making

Adaptive behavior depends on appropriate responses to environmental uncertainty. Incidental sensory events might simply be distracting and increase errors, but alternatively can lead to stereotyped responses despite their irrelevance. To evaluate these possibilities, we test whether task-irrelevant sensory prediction errors influence risky decision making in humans across seven experiments (total n = 1600). Rare auditory sequences preceding option presentation systematically increase risk taking and decrease choice perseveration (i.e., increased tendency to switch away from previously chosen options). The risk-taking and perseveration effects are dissociable by manipulating auditory statistics: when rare sequences end on standard tones, including when rare sequences consist only of standard tones, participants are less likely to perseverate after rare sequences but not more likely to take risks. Computational modeling reveals that these effects cannot be explained by increased decision noise but can be explained by value-independent risky bias and perseveration parameters, decision biases previously linked to dopamine. Control experiments demonstrate that both surprise effects can be eliminated when tone sequences are presented in a balanced or fully predictable manner, and that surprise effects cannot be explained by erroneous beliefs. These findings suggest that incidental sounds may influence many of the decisions we make in daily life.

Highly logical and non-emotional decisions in both risky and social contexts: understanding decision making in autism spectrum disorder through computational modeling

In risky contexts, autism spectrum disorder (ASD) individuals exhibit more logical consistency and non-emotional decisions than do typical adults (TAs). This way of deciding could be also prevailing in social contexts, leading to maladaptive decisions. This evidence is scarce and inconsistent, and further research is needed. Recent developments in computational modeling allow analysis of decisional subcomponents that could provide valuable information to understand the decision-making and help address inconsistencies. Twenty-seven individuals with ASD and 25 TAs were submitted to a framing-task and the ultimatum game (UG). The Rescorla-Wagner computational model was used to analyze UG decisions. Results showed that in the UG, the ASD group exhibited a higher utilitarianism, characterized by lower aversion to unfairness and higher acceptance of offers. Moreover, this way of deciding was predicted by the higher economic rationality found in the framing task, where people with ASD did not manifest emotional biases such as framing effect. These results could suggest an atypical decision making, highly logical and non-emotional, as a robust feature of ASD.

Decomposing loss aversion from a single neural signal

People often display stronger aversion to losses than appetite for equivalent gains, a widespread phenomenon known as loss aversion. The prevailing theory attributes loss aversion to a valuation bias that amplifies losses relative to gains. An alternative account attributes loss aversion to a response bias that avoids choices that might result in loss. By modeling the temporal dynamics of scalp electrical activity during decisions to accept or reject gambles within a sequential sampling framework, we decomposed valuation bias and response bias from a single event-related neural signal, the P3. Specifically, we found valuation bias manifested as larger sensitivity of P3 to losses than gains, which was localizable to reward-related brain regions. By contrast, response bias manifested as larger P3 preceding gamble acceptance than rejection and was localizable to motor cortex. Our study reveals the dissociable neural biomarkers of response bias and valuation bias underpinning loss-averse decisions.

The sign effect in temporal discounting does not require the hippocampus

When considering future outcomes, humans tend to discount gains more than losses. This phenomenon, referred to as the temporal discounting sign effect, is thought to result from the greater anticipated emotional impact of waiting for a negative outcome (dread) compared to waiting for a positive outcome (mixture of savoring and impatience). The impact of such anticipatory emotions has been proposed to rely on episodic future thinking. We evaluated this proposal by examining the presence and magnitude of a sign effect in the intertemporal decisions of individuals with hippocampal amnesia, who are severely impaired in their ability to engage in episodic mental simulation, and by comparing their patterns of choices to those of healthy controls. We also measured loss aversion, the tendency to assign greater value to losses compared to equivalent gains, to verify that any reduction in the sign effect in the hippocampal lesion group could not be explained by a group difference in loss aversion. Results showed that participants with hippocampal amnesia exhibited a sign effect, with less discounting of monetary losses compared to gains, that was similar in magnitude to that of controls. Loss aversion, albeit greater in the hippocampal compared to the control group, did not account for the sign effect. These results indicate that the sign effect does not depend on the integrity of hippocampally mediated episodic processes. They suggest instead that the impact of anticipatory emotions can be factored into decisions via semantic future thinking, drawing on non-contextual knowledge about oneself.

An ecological assessment of decision-making under risk and ambiguity through the virtual serious game Kalliste Decision Task

Traditional methods for evaluating decision-making provide valuable insights yet may fall short in capturing the complexity of this cognitive capacity, often providing insufficient for the multifaceted nature of decisions. The Kalliste Decision Task (KDT) is introduced as a comprehensive, ecologically valid tool aimed at bridging this gap, offering a holistic perspective on decision-making. In our study, 81 participants completed KDT alongside established tasks and questionnaires, including the Mixed Gamble Task (MGT), Iowa Gambling Task (IGT), and Stimulating & Instrumental Risk Questionnaire (S&IRQ). They also completed the User Satisfaction Evaluation Questionnaire (USEQ). The results showed excellent usability, with high USEQ scores, highlighting the user-friendliness of KDT. Importantly, KDT outcomes showed significant correlations with classical decision-making variables, shedding light on participants' risk attitudes (S&IRQ), rule-based decision-making (MGT), and performance in ambiguous contexts (IGT). Moreover, hierarchical clustering analysis of KDT scores categorized participants into three distinct profiles, revealing significant differences between them on classical measures. The findings highlight KDT as a valuable tool for assessing decision-making, addressing limitations of traditional methods, and offering a comprehensive, ecologically valid approach that aligns with the complexity and heterogeneity of real-world decision-making, advancing research and providing insights for understanding and assessing decision-making across multiple domains.

Reining in regret: emotion regulation modulates regret in decision making

Whereas the influence of regret on decision making is well-established, it remains unclear whether emotion regulation may modulate both the affective experience of regret and its influence on decisions. To examine this question, participants made decisions about options involving uncertainty using two different, instructed emotion regulation strategies. In one case, they were instructed to treat each choice individually, while in the other they were encouraged to treat a series of decisions as a portfolio. The present experiment demonstrates that approaching a series of decisions as a portfolio led to less extreme affective reactions to outcomes and lowered physiological arousal levels compared to focusing on each decision in isolation. However, the different emotion regulation strategies did not alter the influence of anticipatory regret on choices. The results indicate that these different emotion regulation strategies can be used to alter the experience of regret. These findings support a role for cognitive strategies in mitigating the affective experience of regret and suggest a means to encourage consumer welfare.

What polarizes citizens? An explorative analysis of 817 attitudinal items from a non-random online panel in Germany

Various studies point to the lack of evidence of distributive opinion polarization in Europe. As most studies analyse the same item batteries from international social surveys, this lack of polarization might be due to an item's issue (e.g., the nature or substance of an item) or item formulation characteristics used to measure polarization. Based on a unique sample of 817 political attitudinal items asked in 2022 by respondents of a non-random online panel in Germany, we empirically assess the item characteristics most likely to lead to distributive opinion polarization-measured with the Van der Eijk agreement index. Our results show that only 20% of the items in our sample have some-at most moderate-level of opinion polarization. Moreover, an item's salience in the news media before the survey data collection, whether an item measures attitudes toward individual financial and non-financial costs, and the implicit level of knowledge required to answer an item (level of technicality) are significantly associated with higher opinion polarization. By contrast, items measuring a cultural issue (such as issues on gender, LGTBQI+, and ethnic minorities) and items with a high level of abstraction are significantly associated with a lower level of polarization. Our study highlights the importance of reflecting on the potential influence of an item's issue and item formulation characteristics on the empirical assessment of distributive opinion polarization.

Multiple timescales of temporal context in risky choice: Behavioral identification and relationships to physiological arousal

Context-dependence is fundamental to risky monetary decision-making. A growing body of evidence suggests that temporal context, or recent events, alters risk-taking at a minimum of three timescales: immediate (e.g. trial-by-trial), neighborhood (e.g. a group of consecutive trials), and global (e.g. task-level). To examine context effects, we created a novel monetary choice set with intentional temporal structure in which option values shifted between multiple levels of value magnitude ("contexts") several times over the course of the task. This structure allowed us to examine whether effects of each timescale were simultaneously present in risky choice behavior and the potential mechanistic role of arousal, an established correlate of risk-taking, in context-dependency. We found that risk-taking was sensitive to immediate, neighborhood, and global timescales: risk-taking decreased following large (vs. small) outcome amounts, increased following large positive (but not negative) shifts in context, and increased when cumulative earnings exceeded expectations. We quantified arousal with skin conductance responses, which were related to the global timescale, increasing with cumulative earnings, suggesting that physiological arousal captures a task-level assessment of performance. Our results both replicate and extend prior research by demonstrating that risky decision-making is consistently dynamic at multiple timescales and that the role of arousal in risk-taking extends to some, but not all timescales of context-dependence.

Goal-Dependent Hippocampal Representations Facilitate Self-Control

Hippocampal activity linking past experiences and simulations of the future with current goals can play an important role in decision-making. The representation of information within the hippocampus may be especially critical in situations where one needs to overcome past rewarding experiences and exert self-control. Self-control success or failure may depend on how information is represented in the hippocampus and how effectively the representation process can be modified to achieve a specific goal. We test this hypothesis using representational similarity analyses of human (female/male) neuroimaging data during a dietary self-control task in which individuals must overcome taste temptations to choose healthy foods. We find that self-control is indeed associated with the way individuals represent taste information (valance) in the hippocampus and how taste representations there adapt to align with different goals/contexts. Importantly, individuals who were able to shift their hippocampal representations to a larger degree to align with the current motivation were better able to exert self-control when facing a dietary challenge. These results suggest an alternative or complementary neurobiological pathway leading to self-control success and indicate the need to update the classical view of self-control to continue to advance our understanding of its behavioral and neural underpinnings.SIGNIFICANCE STATEMENT The paper provides a new perspective on what leads to successful self-control at the behavioral and neurobiological levels. Our data suggest that self-control is enhanced when individuals adjust hippocampal processing to align with current goals.

Adaptive Design Optimization as a Promising Tool for Reliable and Efficient Computational Fingerprinting

A key challenge in understanding mental (dys)functions is their etiological and functional heterogeneity, and several multidimensional assessments have been proposed for their comprehensive characterization. However, such assessments require lengthy testing, which may hinder reliable and efficient characterization of individual differences due to increased fatigue and distraction, especially in clinical populations. Computational modeling may address this challenge as it often provides more reliable measures of latent neurocognitive processes underlying observed behaviors and captures individual differences better than traditional assessments. However, even with a state-of-the-art hierarchical modeling approach, reliable estimation of model parameters still requires a large number of trials. Recent work suggests that Bayesian adaptive design optimization (ADO) is a promising way to address these challenges. With ADO, experimental design is optimized adaptively from trial to trial to extract the maximum amount of information about an individual's characteristics. In this review, we first describe the ADO methodology and then summarize recent work demonstrating that ADO increases the reliability and efficiency of latent neurocognitive measures. We conclude by discussing the challenges and future directions of ADO and proposing development of ADO-based computational fingerprints to reliably and efficiently characterize the heterogeneous profiles of psychiatric disorders.

Ethnic discrimination unlearned: experience in the repeated Trust Game reduces trust bias

Introduction

Discrimination toward ethnic minorities is a persistent societal problem. One reason behind this is a bias in trust: people tend to trust their ingroup and comparatively distrust outgroups.

Methods

In this study, we investigated whether and how people change their explicit trust bias with respect to ethnicity based on behavioral interactions with in- and outgroup members in a modified Trust Game.

Results

Subjects' initial explicit trust bias disappeared after the game. The change was largest for ingroup members who behaved unfairly, and the reduction of trust bias generalized to a small sample of new in- and outgroup members. Reinforcement learning models showed subjects' learning was best explained by a model with only one learning rate, indicating that subjects learned from trial outcomes and partner types equally during investment.

Discussion

We conclude that subjects can reduce bias through simple learning, in particular by learning that ingroup members can behave unfairly.

Logical decisions after a psychosocial stressor: The late phase of acute stress reduces loss aversion

Loss aversion, the principle that losses have a greater impact on decision-making than gains, can be modulated by stress. Most findings reported that stress reduces loss aversion, in line with the alignment hypothesis. Yet, decision-making was always assessed at the early stages of the stress response. Instead, the latter phase of the stress response enhances the salience-network and then, it could amplify the salience of losses, thereby increasing loss aversion. To our knowledge, it has never been studied how the latter stress response influences loss aversion and our aim is to fill this gap. 92 participants were divided into experimental and control group. The first one was exposed to the Trier Social Stress Test, and controls viewed a match-length distractor video. Both groups performed a mixed gamble task to measure loss aversion through a Bayesian-computational model. During and after the stressor, experimental group exhibited signs of both physiological and psychological stress which indicated that stress induction was effective. However, rather than increasing, loss aversion of stressed participants was lower. These results constitute a new evidence of stress influencing loss aversion and are discussed within the alignment hypothesis, according to which stress aligns sensitivity to gains and losses.

Conceptual representations of uncertainty predict risky decision-making

Decisions made under uncertainty often are considered according to their perceived subjective value. We move beyond this traditional framework to explore the hypothesis that conceptual representations of uncertainty influence risky choice. Results reveal that uncertainty concepts are represented along a dimension that jointly captures probabilistic and valenced features of the conceptual space. These uncertainty representations predict the degree to which an individual engages in risky decision-making. Moreover, we find that most individuals have two largely distinct representations: one for uncertainty and another for certainty. In contrast, a minority of individuals exhibit substantial overlap between their representations of uncertainty and certainty. Together, these findings reveal the relationship between the conceptualization of uncertainty and risky decisions.

Dopamine facilitates the translation of physical exertion into assessments of effort

Our assessments of effort are critically shaped by experiences of exertion. However, it is unclear how the nervous system transforms physical exertion into assessments of effort. Availability of the neuromodulator dopamine influences features of motor performance and effort-based decision-making. To test dopamine's role in the translation of effortful exertion into assessments of effort, we had participants with Parkinson's disease, in dopamine depleted (OFF dopaminergic medication) and elevated (ON dopaminergic medication) states, exert levels of physical exertion and retrospectively assess how much effort they exerted. In a dopamine-depleted state, participants exhibited increased exertion variability and over-reported their levels of exertion, compared to the dopamine-supplemented state. Increased exertion variability was associated with less accurate effort assessment and dopamine had a protective influence on this effect, reducing the extent to which exertion variability corrupted assessments of effort. Our findings provide an account of dopamine's role in the translation of features of motor performance into judgments of effort, and a potential therapeutic target for the increased sense of effort observed across a range of neurologic and psychiatric conditions.

Reliability of Decision-Making and Reinforcement Learning Computational Parameters

Computational models can offer mechanistic insight into cognition and therefore have the potential to transform our understanding of psychiatric disorders and their treatment. For translational efforts to be successful, it is imperative that computational measures capture individual characteristics reliably. Here we examine the reliability of reinforcement learning and economic models derived from two commonly used tasks. Healthy individuals (N = 50) completed a restless four-armed bandit and a calibrated gambling task twice, two weeks apart. Reward and punishment learning rates from the reinforcement learning model showed good reliability and reward and punishment sensitivity from the same model had fair reliability; while risk aversion and loss aversion parameters from a prospect theory model exhibited good and excellent reliability, respectively. Both models were further able to predict future behaviour above chance within individuals. This prediction was better when based on participants' own model parameters than other participants' parameter estimates. These results suggest that reinforcement learning, and particularly prospect theory parameters, as derived from a restless four-armed bandit and a calibrated gambling task, can be measured reliably to assess learning and decision-making mechanisms. Overall, these findings indicate the translational potential of clinically-relevant computational parameters for precision psychiatry.

Neural bases of loss aversion when choosing for oneself versus known or unknown others

Despite the ubiquitous interdependence between one's own decisions and others' welfare, and the controversial evidence on the behavioral effect of choosing for others, the neural bases of making decisions for another versus oneself remain unexplored. We investigated whether loss aversion (LA; the tendency to avoid losses over approaching equivalent gains) is modulated by (i) choosing for oneself, other individuals, or both; (ii) knowing or not knowing the other recipients; or (iii) an interaction between these factors. We used fMRI to assess the brain activations associated with choosing whether to accept or reject mixed gambles, either for oneself, for another player, or both, in 2 groups of 28 participants who had or had not briefly interacted with the other players before scanning. Participants displayed higher LA for choices involving their payoff compared with those affecting only the payoff of other, known, players. This "social" modulation of decision-making was found to engage the dorsomedial prefrontal cortex and its inhibitory connectivity to the middle cingulate cortex. This pattern might underpin decision-making for known others via self-other distinction processes associated with dorsomedial prefrontal areas, with this in turn promoting the inhibition of socially oriented responses through the downregulation of the midcingulate node of the empathy network.

Inter-rater reliability of functional MRI data quality control assessments: A standardised protocol and practical guide using pyfMRIqc

Quality control is a critical step in the processing and analysis of functional magnetic resonance imaging data. Its purpose is to remove problematic data that could otherwise lead to downstream errors in the analysis and reporting of results. The manual inspection of data can be a laborious and error-prone process that is susceptible to human error. The development of automated tools aims to mitigate these issues. One such tool is pyfMRIqc, which we previously developed as a user-friendly method for assessing data quality. Yet, these methods still generate output that requires subjective interpretations about whether the quality of a given dataset meets an acceptable standard for further analysis. Here we present a quality control protocol using pyfMRIqc and assess the inter-rater reliability of four independent raters using this protocol for data from the fMRI Open QC project (https://osf.io/qaesm/). Data were classified by raters as either "include," "uncertain," or "exclude." There was moderate to substantial agreement between raters for "include" and "exclude," but little to no agreement for "uncertain." In most cases only a single rater used the "uncertain" classification for a given participant's data, with the remaining raters showing agreement for "include"/"exclude" decisions in all but one case. We suggest several approaches to increase rater agreement and reduce disagreement for "uncertain" cases, aiding classification consistency.

Computational models of subjective feelings in psychiatry

Research in computational psychiatry is dominated by models of behavior. Subjective experience during behavioral tasks is not well understood, even though it should be relevant to understanding the symptoms of psychiatric disorders. Here, we bridge this gap and review recent progress in computational models for subjective feelings. For example, happiness reflects not how well people are doing, but whether they are doing better than expected. This dependence on recent reward prediction errors is intact in major depression, although depressive symptoms lower happiness during tasks. Uncertainty predicts subjective feelings of stress in volatile environments. Social prediction errors influence feelings of self-worth more in individuals with low self-esteem despite a reduced willingness to change beliefs due to social feedback. Measuring affective state during behavioral tasks provides a tool for understanding psychiatric symptoms that can be dissociable from behavior. When smartphone tasks are collected longitudinally, subjective feelings provide a potential means to bridge the gap between lab-based behavioral tasks and real-life behavior, emotion, and psychiatric symptoms.

Decision-making styles during stressful scenarios: The role of anxiety in COVID-19 pandemic

Introduction

Decision-making is not purely rational but highlighted by the influence of intuitive and emotional processes. Recently, researchers have focused more attention on understanding which environmental and personal features influence decision-making processes, and how.

Objective and methods

On this study, we investigate whether Trait Anxiety moderates the impact of Post-Traumatic Stress (PTS) symptoms reported during COVID-19 pandemic on decision-making styles.

Results

The study included 1,358 Brazilian participants (80% women) aged between 20 and 74 (M = 41.11; SD = 11.23) who responded to an online survey between May and August of the year 2021 of COVID-19 pandemic to The State-Trait Anxiety Inventory, The Decisions Styles Scale, The Impact of Event Scale - Revised and questions related to COVID-19. Through moderation analysis, we observed that experiencing PTS is associated with a higher tendency to biased/heuristic decision-making processes.

Discussion

Trait Anxiety seems to influence how people respond to PTS symptoms on decision-making related processes. Subjects with higher Trait Anxiety reported lower tendency to appeal to rationality, especially under higher reported levels of PTS. Meanwhile, lower Trait Anxiety subjects exhibited more reason-based decision-making under higher rates of PTS. This work contributes to a deeper understanding of the interplay among environmental and individual differences on decision-making styles and helps to identify factors of vulnerability for poorer cognitive functioning on stressful scenarios.

Bid outcome processing in Vickrey auctions: An ERP study

Online retailers often sell products using a socially competitive second-price sealed-bid auction known as a Vickrey auction (VA), an incentivized demand-revealing mechanism used to elicit players' subjective values. The VA presents a situation of risky decision-making, which typically implements value processing and a loss aversion mechanism. Neural outcome processing of VA bids are not known; this study explores this for the first time using EEG. Twenty-eight healthy participants bid on household items against an anonymous, computerized opponent. Bid outcome event-related potentials were predicted to differentiate between three conditions: outbid (no-win), large margin win (bargain), and small margin win (snatch). Individual loss aversion values were evaluated in a separate behavioral experiment offering gains or losses of variable amounts but equal chances against an assured gain. Processing outcomes of VA bids were associated with a feedback-related negativity (FRN) potential with a spatial maximum at the vertex (251-271 ms), where bargain win trials resulted in greater FRN amplitudes than snatch win trials. Additionally, a P300 potential was sensitive to win versus no-win outcomes and to retail price. Individual loss aversion level did not correlate with the strength of FRN or P300. Results show that outcome processing in a VA is associated with FRN that differentiates between relatively advantageous and less advantageous gains, and a P300 that distinguishes between the more and less expensive auction items. Our findings pave the way to an objective exploration of economic decision-making and purchasing behavior involving a widely popular auction.

The Genetics of Risk Aversion: A Systematic Review

Risk and loss aversion are phenomena with an important influence on decision-making, especially in economic contexts. At present, it remains unclear whether both are related, as well as whether they could have an emotional origin. The objective of this review, following the PRISMA statements, is to find consistencies in the genetic bases of risk and loss aversion with the aim of understanding their nature and shedding light on the above issues. A total of 23 empirical research met the inclusion criteria and were included from PubMed and ScienceDirect. All of them reported genetic measures from human samples and studied risk and loss aversion within an economic framework. The results for risk aversion, although with many limitations, attributed mainly to their heterogeneity and the lack of control in the studies, point to the implication of multiple polymorphisms related to the regulation of the serotonergic and dopaminergic pathways. In general, studies found the highest levels of risk aversion were associated with alleles that are linked to lower (higher) sensitivity or levels of dopamine (serotonin). For loss aversion, the scarcity of results prevents us from drawing clear conclusions, although the limited evidence seems to point in the same direction as for risk aversion. Therefore, it seems that risk aversion could have a stable genetical base which, in turn, is closely linked to emotions, but more research is needed to answer whether this phenomenon is related to loss aversion, as well as if the latter could also have an emotional origin. We also provide recommendations for future studies on genetics and economic behavior.

Choosing for others changes dissociable computational mechanisms underpinning risky decision-making

Choices under risk often have consequences for ourselves and others. Yet, it is unclear how the other's identity (stranger, close friend, etc.) influences risky choices made on their behalf. In a mixed within and between subjects design, two participant groups made three series of risky economic decisions: for themselves, another person, or for both themselves and another person (i.e., shared outcomes). One group made choices involving a same-sex stranger (n = 29), the other made choices involving a same-sex close friend (n = 28). Hierarchical Bayesian estimation of computations underlying risky decision-making revealed that relative to choosing for themselves, people were more risk averse, loss averse, and consistent when choices involved another person. Partner identity was additionally crucial: people became risk neutral and more consistent when choosing for friends relative to strangers. These findings establish that the complexity of the social world is mirrored in its nuanced consequences for our choices.

Serotonin modulates asymmetric learning from reward and punishment in healthy human volunteers

Instrumental learning is driven by a history of outcome success and failure. Here, we examined the impact of serotonin on learning from positive and negative outcomes. Healthy human volunteers were assessed twice, once after acute (single-dose), and once after prolonged (week-long) daily administration of the SSRI citalopram or placebo. Using computational modelling, we show that prolonged boosting of serotonin enhances learning from punishment and reduces learning from reward. This valence-dependent learning asymmetry increases subjects' tendency to avoid actions as a function of cumulative failure without leading to detrimental, or advantageous, outcomes. By contrast, no significant modulation of learning was observed following acute SSRI administration. However, differences between the effects of acute and prolonged administration were not significant. Overall, these findings may help explain how serotonergic agents impact on mood disorders.

The continuous and changing impact of affect on risky decision-making

Affective experience has an important role in decision-making with recent theories suggesting a modulatory role of affect in ongoing subjective value computations. However, it is unclear how varying expectations and uncertainty dynamically influence affective experience and how dynamic representation of affect modulates risky choices. Using hierarchical Bayesian modeling on data from a risky choice task (N = 101), we find that the temporal integration of recently encountered choice parameters (expected value, uncertainty, and prediction errors) shapes affective experience and impacts subsequent choice behavior. Specifically, self-reported arousal prior to choice was associated with increased loss aversion, risk aversion, and choice consistency. Taken together, these findings provide clear behavioral evidence for continuous affective modulation of subjective value computations during risky decision-making.

Computational and Motivational Mechanisms of Human Social Decision Making Involving Close Others

Every day, human beings make decisions with social consequences. These social consequences matter most when they impact those closest to us. Recent research has shown that humans exhibit reliable preferences when deciding between conflicting outcomes involving close others - for example, prioritizing the interests of one's family member over one's friend. However, virtually nothing is known about the mechanisms that drive these preferences. We conducted a pre-registered study in a large (maximum N=375) sample to quantify the computational and motivational mechanisms of human social decision-making preferences involving close others. By pairing assessment techniques from behavioral economics and psychological science with computational modeling and random coefficient regression, we show that value-based cognitive computations (e.g., risk and loss aversion) drive social decision-making preferences involving financial outcomes, whereas socioemotional motivations (e.g., relationship quality) underlie preferences involving social outcomes. These results imply mechanistic heterogeneity, underscoring a need for greater attention to contextual specificity in social decision-making.

Prosocial Gains and Losses: Modulations of Human Social Decision-Making by Loss-Gain Context

The role of the loss-gain context in human social decision-making remains heavily debated, with mixed evidence showing that losses (vs. gains) boost both selfish and prosocial motivations. Herein, we propose that the loss context, compared to the gain context, exacerbates intuitive reactions in response to the conflict between self-interest and prosocial preferences, regardless of whether those dominant responses are selfish or altruistic. We then synthesize evidence from three lines of research to support the account, which indicates that losses may either enhance or inhibit altruistic behaviors depending on the dominant responses in the employed interactive economic games, prosocial/proself traits, and the explicit engagement of deliberative processes. The current perspective contributes to the ongoing debate on the association between loss-gain context and human prosociality by putting forward a theoretical framework to integrate previous conflicting perspectives.

Atypical interoception as a common risk factor for psychopathology: A review

The inadequacy of a categorial approach to mental health diagnosis is now well-recognised, with many authors, diagnostic manuals and funding bodies advocating a dimensional, trans-diagnostic approach to mental health research. Variance in interoception, the ability to perceive one's internal bodily state, is reported across diagnostic boundaries, and is associated with atypical functioning across symptom categories. Drawing on behavioural and neuroscientific evidence, we outline current research on the contribution of interoception to numerous cognitive and affective abilities (in both typical and clinical populations), and describe the interoceptive atypicalities seen in a range of psychiatric conditions. We discuss the role that interoception may play in the development and maintenance of psychopathology, as well as the ways in which interoception may differ across clinical presentations. A number of important areas for further research on the role of interoception in psychopathology are highlighted.

Emotional stress & decision-making: an emotional stressor significantly reduces loss aversion

Stress influences loss aversion, the principle that losses loom larger than gains, although the nature of this relationship is unclear. Studies show that stress reduces loss aversion; however, stress response has been only studied by means of physiological measures, but the stressor emotional impact remained unclear. Since emotions can modify stress response and increase the activity of the loss aversion neural substrates, it could be expected that an emotional stressor may produce the opposite effect, i.e. loss aversion increase. 69 participants were divided into experimental and control group. The first one was exposed to emotional stress through a 5-minutes video, and control group viewed a match-length distractor video. Physiological stress response was assessed by means of electrodermal activity (EDA), and both perceived stress, and negative affect (i.e. psychological stress response) were registered through questionnaires. Both groups performed a mixed gamble task, which allowed the extraction of loss aversion through a Bayesian-computational model. During and after video, experimental group had higher electrodermal activity, perceived stress, and negative affect than controls, suggesting that emotional stress induction was effective. However, rather than increasing, loss aversion of stressed participants was lower. These results constitute a new evidence of emotional stress influencing loss aversion and highlight that stress, regardless of its emotional impact, can reduce this phenomenon. These results should be considered when predicting risky decisions.

Economic Decisions with Ambiguous Outcome Magnitudes Vary with Low and High Stakes but Not Trait Anxiety or Depression

Most of life's decisions involve risk and uncertainty regarding whether reward or loss will follow. Decision makers often face uncertainty not only about the likelihood of outcomes (what are the chances that I will get a raise if I ask my supervisor? What are the chances that my supervisor will be upset with me for asking?) but also the magnitude of outcomes (if I do get a raise, how large will it be? If my supervisor gets upset, how bad will the consequences be for me?). Only a few studies have investigated economic decision making with ambiguous likelihoods, and even fewer have investigated ambiguous outcome magnitudes. In the present report, we investigated the effects of ambiguous outcome magnitude, risk, and gains/losses in an economic decision-making task with low stakes (Study 1; $3.60-$5.70; N = 367) and high stakes (Study 2; $6-$48; N = 210) using a within-subjects design. We conducted computational modeling to determine individuals' preferences/aversions for ambiguous outcome magnitudes, risk, and gains/losses. We additionally investigated the association between trait anxiety and trait depression and decision-making parameters. Our results show that increasing stakes increased ambiguous gain aversion and unambiguous risk aversion but increased ambiguous sure loss preference; participants also became more averse to ambiguous sure gains relative to unambiguous risky gains. There were no significant effects of trait anxiety or trait depression on economic decision making. Our results suggest that as stakes increase, people tend to avoid uncertainty in the gain domain (especially ambiguous gains) but prefer ambiguous vs unambiguous sure losses.

Emotion prediction errors guide socially adaptive behaviour

People make decisions based on deviations from expected outcomes, known as prediction errors. Past work has focused on reward prediction errors, largely ignoring violations of expected emotional experiences—emotion prediction errors. We leverage a method to measure real-time fluctuations in emotion as people decide to punish or forgive others. Across four studies (N=1,016), we reveal that emotion and reward prediction errors have distinguishable contributions to choice, such that emotion prediction errors exert the strongest impact during decision-making. We additionally find that a choice to punish or forgive can be decoded in less than a second from an evolving emotional response, suggesting emotions swiftly influence choice. Finally, individuals reporting significant levels of depression exhibit selective impairments in using emotion—but not reward—prediction errors. Evidence for emotion prediction errors potently guiding social behaviors challenge standard decision-making models that have focused solely on reward.

Does Fear of the New Coronavirus Lead to Low-Carbon Behaviors: The Moderating Effect of Outcome Framing

PURPOSE

Air pollution has been found to aggravate the infection and mortality of COVID-19, leading to increasing attention on pro-environmental behaviors. Considering individuals' psychological distance from COVID-19, this research aims to examine the relationship between fear of COVID-19, air pollution concern, and low-carbon behaviors.

METHODS

Two survey-based studies were conducted in this research. Study 1 consisted of 323 participants and examined the relationships between psychological distance (PD) from COVID-19, fear of COVID-19, air pollution concern, and low-carbon behaviors. Study 2 identified the moderating effect of outcome framing using an intergroup experiment in which 304 participants were randomly assigned to two groups (gain framing vs loss framing).

RESULTS

The results of Study 1 showed that the closer the PD was, the higher the fear was. Fear of COVID-19 and low-carbon behaviors were positively associated. Additionally, air pollution concern acted as a mediator in their relationship. The results of the moderating effect test in Study 2 showed that fear and air pollution concern led to higher low-carbon behavioral intention within gain framing than within loss framing.

CONCLUSION

This research revealed that personal fear of public health emergencies will lead to environmental pollution concern and pro-environmental behaviors, and information from the outside plays a moderating role. The results provide implications for policy advocacy of the health and environmental sectors and for guiding people's low-carbon behaviors.

Sunk cost effects hinge on the neural recalibration of reference points in mental accounting

The context of reinforcement history drastically influences human value-based choices. Mental accounting theory concerns how prior outcomes are perceived, combined and assigned into specific "mental" accounts to influence subsequent decisions but remains agnostic about the underlying computational and neural mechanisms. In a two-stage sequential decision-making task, we found previously incurred costs and bonuses biased subjects' choices in the opposite directions with similar magnitudes. Such effects were consistent with a computational model where the reference point was recalibrated by prior gains and losses encoded in the ventral striatum activities. Moreover, individual's susceptibility to prior outcomes was captured by the response of the dorsolateral prefrontal cortex and its functional connectivity with the medial orbitofrontal cortex, whose activity tracked the value of the chosen option. Our findings provide both behavioral and neural evidence of how sunk costs, benefits, and prospects are integrated within the mental accounting framework to influence choice behavior.

Three Theories of Choice and Their Psychology of Losses

Loss aversion has long been regarded as a fundamental psychological regularity, yet evidence has accumulated to challenge this conclusion. We review three theories of how people make decisions under risk and, as a consequence, value potential losses: expected-utility theory, prospect theory, and risk-sensitivity theory. These theories, which stem from different behavioral disciplines, differ in how they conceptualize value and thus differ in their assumptions about the degree to which value is dependent on state and context; ultimately, they differ in the extent to which they see loss aversion as a stable individual trait or as a response to particular circumstances. We highlight points of confusion that have at least partly fueled the debate on the reality of loss aversion and discuss four sources of conflicting views: confusion of loss aversion with risk aversion, conceptualization of loss aversion as a trait or as state dependent, conceptualization of loss aversion as context dependent or independent, and the attention-aversion gap-the observation that people invest more attentional resources when evaluating losses than when evaluating gains, even when their choices do not reveal loss aversion.

Neurophysiological contributors to advantageous risk-taking: an experimental psychopharmacological investigation

The ability to learn from experience is critical for determining when to take risks and when to play it safe. However, we know little about how within-person state changes, such as an individual's degree of neurophysiological arousal, may impact the ability to learn which risks are most likely to fail vs succeed. To test this, we used a randomized, double-blind, placebo-controlled design to pharmacologically manipulate neurophysiological arousal and assess its causal impact on risk-related learning and performance. Eighty-seven adults (45% female, Mage = 20.1 ± 1.46 years) took either propranolol (n = 42), a beta-adrenergic receptor blocker that attenuates sympathetic nervous system-related signaling, or a placebo (n = 45). Participants then completed the Balloon Emotional Learning Task, a risk-taking task wherein experiential learning is necessary for task success. We found that individuals on propranolol, relative to placebo, earned fewer points on the task, suggesting that they were less effective risk-takers. This effect was mediated by the fact that those on propranolol made less optimal decisions in the final phase of the task on trials with the greatest opportunity for advantageous risk-taking. These findings highlight that neurophysiological arousal supports risk-related learning and, in turn, more advantageous decision-making and optimal behavior under conditions of risk.

The effect of testosterone on economic risk-taking: A multi-study, multi-method investigation

Testosterone has been suggested to influence individuals' economic decision making, yet the effects of testosterone on economic behavior are not well-understood and existing research is equivocal. In response, in three studies, we examined the extent to which testosterone affected or was associated with several different facets of economic decision making. Study 1 was a double-blind, placebo-controlled, within-subjects study examining loss aversion and risk-taking (N = 26), whereas Study 2 was a larger double-blind, placebo-controlled, between-subjects study examining loss aversion and risk-taking behavior (N = 117). As a methodological compliment, Study 3 was a larger correlational design (N = 213) with a highly accurate measure of endogenous testosterone examining a wider range of economic behaviors and trait-like preferences. Broadly, the results of all three studies suggest no consistent relationship between testosterone and financial behavior or preferences. Although there were significant effects in specific cases, these findings did not replicate in other studies or would not remain significant when controlling for family-wise error rate. We consider potential contextual moderators that may determine under what circumstances testosterone affects economic decision making.

Enhancing reappraisal of negative emotional memories with transcranial direct current stimulation

Reappraisal of negative memories and experiences is central for mental health and well-being. Deficiency of reappraisal lies at the core of many psychiatric disorders and is a key target for treatment. Here we apply transcranial direct current stimulation (tDCS) to enhance reappraisal of negative emotional memories. In a randomised, sham-controlled, 2 × 2 between-subject and double-blinded study, we applied single sessions of anodal and sham tDCS over the right dorsolateral prefrontal cortex (dlPFC) of 101 healthy participants while reappraising a personal negative memory or engaging in a control task. We hypothesised that (i) reappraisal decreases negative valence, arousal and evaluations of the memory and leads to improved decision making, and (ii) tDCS leads to additional changes in these reappraisal outcomes. In line with these hypotheses, participants’ personal memories were rated as less negative and less arousing following reappraisal. Anodal tDCS during reappraisal was associated with significant short-term reductions in negative valence compared to sham stimulation. Our results indicate that tDCS may enhance some of the effects of reappraisal. If replicated, our findings suggest potential benefits elicited by tDCS stimulation that may help optimise current treatment approaches for psychiatric disorders.

Age Influences Loss Aversion Through Effects on Posterior Cingulate Cortical Thickness

Decision-making strategies shift during normal aging and can profoundly affect wellbeing. Although overweighing losses compared to gains, termed "loss aversion," plays an important role in choice selection, the age trajectory of this effect and how it may be influenced by associated changes in brain structure remain unclear. We therefore investigated the relationship between age and loss aversion, and tested for its mediation by cortical thinning in brain regions that are susceptible to age-related declines and are implicated in loss aversion - the insular, orbitofrontal, and anterior and posterior cingulate cortices. Healthy participants (n = 106, 17-54 years) performed the Loss Aversion Task. A subgroup (n = 78) provided structural magnetic resonance imaging scans. Loss aversion followed a curvilinear trajectory, declining in young adulthood and increasing in middle-age, and thinning of the posterior cingulate cortex mediated this trajectory. The findings suggest that beyond a threshold in middle adulthood, atrophy of the posterior cingulate cortex influences loss aversion.

Investigating the effect of losses and gains on effortful engagement during an incentivized Go/NoGo task through anticipatory cortical oscillatory changes

Losses usually have greater subjective value (SV) than gains of equal nominal value but often cause a relative deterioration in effortful performance. Since losses and gains induce differing approach/avoidance behavioral tendencies, we explored whether incentive type interacted with approach/avoidance motor-sets. Alpha- and beta-band event-related desynchronization (ERD) was hypothesized to be weakest when participants expected a loss and prepared an inhibitory motor-set, and strongest when participants expected a gain and prepared an active motor-set. It was also hypothesized that effort would modulate reward and motor-set-related cortical activation patterns. Participants completed a cued Go/NoGo task while expecting a reward (+10p), avoiding a loss (-10p), or receiving no incentive (0p); and while expecting a NoGo cue with a probability of either .75 or .25. Pre-movement alpha- and beta-band EEG power was analyzed using the ERD method, and the SV of effort was evaluated using a cognitive effort discounting task. Gains incentivized faster RTs and stronger preparatory alpha band ERD compared to loss and no incentive conditions, while inhibitory motor-sets resulted in significantly weaker alpha-band ERD. However, there was no interaction between incentive and motor-sets. Participants were more willing to expend effort in losses compared to gain trials, although the SV of effort was not associated with ERD patterns or RTs. Results suggest that incentive and approach/avoidance motor tendencies modulate cortical activations prior to a speeded RT movement independently, and are not associated with the economic value of effort. The present results favor attentional explanations of the effect of incentive modality on effort.

Fear From Afar, Not So Risky After All: Distancing Moderates the Relationship Between Fear and Risk Taking

A growing line of research has shown that individuals can regulate emotional biases in risky judgment and decision-making processes through cognitive reappraisal. In the present study, we focus on a specific tactic of reappraisal known as distancing. Drawing on appraisal theories of emotion and the emotion regulation literature, we examine how distancing moderates the relationship between fear and risk taking and anger and risk taking. In three pre-registered studies (N_total = 1,483), participants completed various risky judgment and decision-making tasks. Replicating previous results, Study 1 revealed a negative relationship between fear and risk taking and a positive relationship between anger and risk taking at low levels of distancing. Study 2 replicated the interaction between fear and distancing but found no interaction between anger and distancing. Interestingly, at high levels of distancing, we observed a reversal of the relationship between fear and risk taking in both Study 1 and 2. Study 3 manipulated emotion and distancing by asking participants to reflect on current fear-related and anger-related stressors from an immersed or distanced perspective. Study 3 found no main effect of emotion nor any evidence of a moderating role of distancing. However, exploratory analysis revealed a main effect of distancing on optimistic risk estimation, which was mediated by a reduction in self-reported fear. Overall, the findings suggest that distancing can help regulate the influence of incidental fear on risk taking and risk estimation. We discuss implications and suggestions for future research.

Development of a novel computational model for the Balloon Analogue Risk Task: The Exponential-Weight Mean-Variance Model

The Balloon Analogue Risk Task (BART) is a popular task used to measure risk-taking behavior. To identify cognitive processes associated with choice behavior on the BART, a few computational models have been proposed. However, the extant models either fail to capture choice patterns on the BART or show poor parameter recovery performance. Here, we propose a novel computational model, the exponential-weight mean-variance (EWMV) model, which addresses the limitations of existing models. By using multiple model comparison methods, including post hoc model fits criterion and parameter recovery, we showed that the EWMV model outperforms the existing models. In addition, we applied the EWMV model to BART data from healthy controls and substance-using populations (patients with past opiate and stimulant dependence). The results suggest that (1) the EWMV model addresses the limitations of existing models and (2) heroin-dependent individuals show reduced risk preference than other groups, which may have significant clinical implications.

Body in the face of uncertainty: The role of autonomic arousal and interoception in decision-making under risk and ambiguity

Influential theories posit that bodily responses are important for decision-making under uncertainty. However, the evidence of the role of our ability to perceive subtle bodily changes (interoception) in decision-making under uncertainty is mixed. These differences may arise from the fact that uncertainty, a part of daily decision-making, can be fractionated into risk (known probabilities) and ambiguity (unknown probabilities). Here we examine the role of arousal and interoception in shaping risky and ambiguous decisions. We measured skin conductance responses and heart rate changes while participants (N = 40) made gambling decisions in the context of risky and ambiguous lotteries. Results reveal that the anticipation phase produced the largest arousal responses, suggesting that the anticipation is a major contributor to arousal during gambling behavior, regardless of the uncertainty type. Moreover, physiological responses were higher following positive outcomes than negative outcomes. We did not find any direct relation between interoceptive dimensions and the attitudes toward risk and ambiguity. However, in those with higher interoceptive accuracy, skin conductance responses differentiated between risk and ambiguity as well as between the gamble phases (decision, anticipation, and outcome). Together, our findings demonstrate that decision-making under uncertainty is to some extent associated with individual differences in the ability both to generate and to perceive accurately subtle changes in bodily arousal during the decision-making process. However, these changes seem to be moderately related to the type of uncertainty (risk or ambiguity).

Capture or suppression? Attentional allocation upon reward and loss-associated nonsalient distractors are supported by distinct neural mechanisms: An EEG study

Previous studies suggest that a reward-associated salient distractor can induce bottom-up attentional capture. Hitherto, the neurophysiological mechanisms underlying attentional allocation upon reward/loss associated nonsalient stimulus remain hardly investigated. The present study built the association between nonsalient stimuli and value, and tested it with a decision-making task. Consequently, we examined whether and how reward/loss-associated nonsalient stimuli (as distractors) influenced attentional allocation in a rapid serial visual presentation task. Behavioral analysis showed a significantly faster recognition of target in the loss condition compared to performance in the neutral/reward conditions. Electrophysiological results showed that reward-associated distractors induced a significant Pd component, while loss-associated distractors induced a significantly higher theta oscillation. These results demonstrated that subjects could proactively suppress reward-associated distractors. More importantly, we showed that attentional allocation upon reward/loss-associated nonsalient distractors is supported by distinct neural mechanisms.

Using dynamic monitoring of choices to predict and understand risk preferences

Navigating conflict is integral to decision-making, serving a central role both in the subjective experience of choice as well as contemporary theories of how we choose. However, the lack of a sensitive, accessible, and interpretable metric of conflict has led researchers to focus on choice itself rather than how individuals arrive at that choice. Using mouse-tracking-continuously sampling computer mouse location as participants decide-we demonstrate the theoretical and practical uses of dynamic assessments of choice from decision onset through conclusion. Specifically, we use mouse tracking to index conflict, quantified by the relative directness to the chosen option, in a domain for which conflict is integral: decisions involving risk. In deciding whether to accept risk, decision makers must integrate gains, losses, status quos, and outcome probabilities, a process that inevitably involves conflict. Across three preregistered studies, we tracked participants' motor movements while they decided whether to accept or reject gambles. Our results show that 1) mouse-tracking metrics of conflict sensitively detect differences in the subjective value of risky versus certain options; 2) these metrics of conflict strongly predict participants' risk preferences (loss aversion and decreasing marginal utility), even on a single-trial level; 3) these mouse-tracking metrics outperform participants' reaction times in predicting risk preferences; and 4) manipulating risk preferences via a broad versus narrow bracketing manipulation influences conflict as indexed by mouse tracking. Together, these results highlight the importance of measuring conflict during risky choice and demonstrate the usefulness of mouse tracking as a tool to do so.

Roles of Ventromedial Prefrontal Cortex and Anterior Cingulate in Subjective Valuation of Prospective Effort

The perceived effort level of an action shapes everyday decisions. Despite the importance of these perceptions for decision-making, the behavioral and neural representations of the subjective cost of effort are not well understood. While a number of studies have implicated anterior cingulate cortex (ACC) in decisions about effort/reward trade-offs, none have experimentally isolated effort valuation from reward and choice difficulty, a function that is commonly ascribed to this region. We used functional magnetic resonance imaging to monitor brain activity while human participants engaged in uncertain choices for prospective physical effort. Our task was designed to examine effort-based decision-making in the absence of reward and separated from choice difficulty-allowing us to investigate the brain's role in effort valuation, independent of these other factors. Participants exhibited subjectivity in their decision-making, displaying increased sensitivity to changes in subjective effort as objective effort levels increased. Analysis of blood-oxygenation-level dependent activity revealed that the ventromedial prefrontal cortex (vmPFC) encoded the subjective valuation of prospective effort, and ACC activity was best described by choice difficulty. These results provide insight into the processes responsible for decision-making regarding effort, partly dissociating the roles of vmPFC and ACC in prospective valuation of effort and choice difficulty.

Exploration of the physiological response to an online gambling task by frequency domain analysis of the electrodermal activity

Online gambling has dramatically increased over the last decades, thus the study of the underlying physiological mechanisms could be helpful to better understand related disorders. Specifically, physiological arousal is well-known to play a key role in gambling behavior. In the present study, unconventional frequency feature of the electrodermal activity (EDA) was extracted (EDASymp_n) and compared to the most common heart rate variability (HRV) spectral parameters (LF, HF, HF_n, LF/HF) to measure arousal during an online gambling session. 46 subjects played online slot machines for 30 minutes, while EDA and ECG were recorded. In the analysis the gaming session was divided into three 10-minutes-long phases. A one-way repeated measures analysis of variance was carried out for each spectral parameter, with the game phases as within-subjects factor. All the calculated parameters showed significant differences between the initial phase of the game and the last two (p < 0.001). In particular, EDAsymp_n displayed a reciprocal trend with respect to HF_n: an initial increase (decrease for HF_n) was followed by a plateau phase. LF exhibited a significant difference also between the second and the third phases. EDA frequency-domain analysis appears to be a promising method for physiological arousal assessment, by showing the same discriminative power of HRV spectral components. Further research is needed to emphasize these findings.Clinical Relevance-This promotes the use of a new and easy-to-implement method to assess sympathetic activity.