The Neural Basis of Loss Aversion in Decision-Making Under Risk

People typically exhibit greater sensitivity to losses than to equivalent gains when making decisions. We used fMRI to investigate neural correlates of loss aversion while individuals decided whether to accept or reject gambles that offered a 50/50 chance of gaining or losing money. A broad set of areas (including midbrain dopaminergic regions and their targets) showed increasing activity as potential gains increased. Potential losses were represented by decreasing activity in several of these same gain-sensitive areas. Finally, individual differences in behavioral loss aversion were predicted by a measure of neural loss aversion in several regions including striatum and prefrontal cortex.



Citation:

Craig Fox, Sabrina Tom, Christopher Trepel, and Russel Poldrack (2008) ,"The Neural Basis of Loss Aversion in Decision-Making Under Risk", in NA - Advances in Consumer Research Volume 35, eds. Angela Y. Lee and Dilip Soman, Duluth, MN : Association for Consumer Research, Pages: 129-132.

Authors

Craig Fox, University of California, Los Angeles
Sabrina Tom, University of California, Los Angeles
Christopher Trepel, University of California, Los Angeles
Russel Poldrack, University of California, Los Angeles



Volume

NA - Advances in Consumer Research Volume 35 | 2008



Share Proceeding

Featured papers

See More

Featured

Immigration, Abortion, and Gay Marriage – Oh My!

TJ Weber, Cal Poly San Luis Obispo
Chris Hydock, Georgetown University, USA
Jeff Joireman, Washington State University, USA
David Sprott, Washington State University, USA

Read More

Featured

Slow and Steady versus Fast and Furious: The Effect of Speed on Decision Making

Ellie Kyung, Dartmouth College, USA
Yael Shani-Feinstein, Ben Gurion University, Israel
Jacob Goldenberg, IDC

Read More

Featured

H6. The Influence of Anthropomorphized Service Toolkit on Consumer Satisfaction in Service Coproduction

Rocky Peng Chen, Hong Kong Baptist University
Kimmy Chan, Hong Kong Baptist University

Read More

Engage with Us

Becoming an Association for Consumer Research member is simple. Membership in ACR is relatively inexpensive, but brings significant benefits to its members.