Are People Altruistic When Making Socially Responsible Investments? Evidence From a tDCS Study

Anodal tDCS over TPJ reduces bidding in Tullock contest: Implications for social decision-making

Contests, as economic, political, and social interactions, can stimulate high levels of effort, but they can also lead to inefficient expenditure of effort (overbidding), resulting in the wastage of social resources. Prior studies have indicated that the temporoparietal junction (TPJ) is associated with overbidding and speculating on the intentions of others during contests. This study aimed to investigate the neural mechanisms of the TPJ in overbidding and to examine changes in bidding behavior after modulating TPJ activity using transcranial direct current stimulation (tDCS). The experiment randomly allocated participants into three groups, each receiving either anodal stimulation of the LTPJ/RTPJ or sham stimulation. Following the stimulation, the participants engaged in the Tullock rent-seeking game. Our results revealed that participants who received anodal stimulation of the LTPJ and RTPJ significantly reduced their bids compared to the sham group, possibly due to enhanced accuracy in guessing others' strategies or enhanced altruistic preferences. Moreover, our findings suggest that while both the LTPJ and RTPJ are associated with overbidding behavior, anodal tDCS targeting the RTPJ is more effective than stimulation of the LTPJ in decreasing overbidding. The aforementioned revelations offer proof of the neural mechanisms of the TPJ in overbidding and provide fresh substantiation for the neural mechanisms of social behavior.

The Neurobase of ambiguity loss aversion about decision making

In our daily decision-making, there are two confusing problems: risk and ambiguity. Many psychological studies and neuroscience studies have shown that the prefrontal cortex (PFC) is an important neural mechanism for modulating the human brain in risk and ambiguity decision-making, especially the dorsolateral prefrontal cortex (DLPFC). We used transcranial direct current stimulation (tDCS) to reveal the causal relationship between the DLPFC and ambiguity decision-making. We design two experimental tasks involving ambiguity to gain and ambiguity to loss. The results of our study show that there is a significant effect on left DLPFC stimulation about ambiguity to loss, there is an insignificant effect on left DLPFC stimulation about ambiguity to gain, and there is an insignificant effect on right DLPFC stimulation about ambiguity to gain and ambiguity to loss. This result indicates that people are more sensitive to ambiguity loss than ambiguity gain. Further analysis found that the degree of participants' attitudes toward ambiguity loss who received anodal simulation was lower than that who received sham stimulation across the left DLPFC, which means that the subjects had a strong ambiguity loss aversion after the participants received the anodal simulation of the left DLPFC.

Enhancing Activity in the Right Temporoparietal Junction Modifies the Effect of a High CEO-to-Employee Pay Ratio on the Perceived Investment Potential in the Construction Industry

As an increasing number of governments require the disclosure of companies’ compensation information, compensation management is becoming an important part of internal management in the construction industry. Although the literature has shown that disclosing a high CEO-to-employee pay ratio will cause various effects on the decision-making of a company’s potential investors, there is little evidence on the neural basis of such effects. Given that previous neuroscience studies have shown that the right temporoparietal junction (TPJ) is associated with altruistic behaviors, this study used transcranial direct current stimulation (tDCS) to explore the role of the right TPJ in the effects of the CEO-to-employee pay ratio on potential investors’ perceived investment potential in the construction industry. The results show that enhancing activity in the right TPJ significantly reduced the perceived investment potential of female participants, especially those with no investment experience, when the company’s CEO-to-employee pay ratio is high compared to when the pay ratio is medium. This effect was not observed in male participants. The mechanisms underlying these effects of tDCS in the right TPJ on the perceived investment potential were also explored. The main contribution of this study lies in its pioneering exploration of the neural basis of investment decision-making regarding the CEO-to-employee pay ratio. Additionally, it reveals individual feature-based differences in the role of the TPJ in investment decision-making and its possible mechanisms.