Brain Processes Underlying the Influence of Prior Gains and Losses on Decisions Under Risk

Kaisa Hytönen, Erasmus University Rotterdam, the Netherlands
Guido Baltussen, Robeco, the Netherlands
Martijn van den Assem, Erasmus University Rotterdam, the Netherlands
Vasily Klucharev, Ale Smidts, G. Thierry Post, Erasmus University Rotterdam, the Netherlands; Erasmus University Rotterdam, the Netherlands; Erasmus University Rotterdam, the Netherlands
The risk attitudes of consumers generally depend on previous outcomes. Here we study behavioral changes and differential brain activations related to prior relative gains and losses. Subjects showed decreased risk aversion after both relative gains and losses. Neuroimaging results revealed that relative gains and losses are processed similarly to actual gains and losses, indicated by ventral striatum and medial prefrontal cortex activity. During subsequent choices, however, insular cortex and right inferior frontal gyrus showed differential activation depending on the prior experience. Activity in these neural regions, related to emotion and control, also correlated with the magnitude of observed behavioral changes.
[ to cite ]:
Kaisa Hytönen, Guido Baltussen, Martijn van den Assem, and Vasily Klucharev, Ale Smidts, G. Thierry Post (2010) ,"Brain Processes Underlying the Influence of Prior Gains and Losses on Decisions Under Risk", in NA - Advances in Consumer Research Volume 37, eds. Margaret C. Campbell, Jeff Inman, and Rik Pieters, Duluth, MN : Association for Consumer Research, Pages: 60-64 .