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The present research examined the influence of perceived ownership (self/other) and perceived chooser (self/other) of stocks on brain activity, and investigated whether differential brain responses to stock outcomes as a result of perceived differences in ownership of stock would be modulated by perceived chooser of stock. We used a 2 (stock chooser: self, other) × 2 (stock owner: self, other) within-subject design to represent four types of chooser-owner relationships. Brain potentials were recorded while participants observed increasing and decreasing stock prices. Results showed that observations of stock outcomes among four types of chooser-owner relationships elicited differentiated feedback-related negativity (d-FRN: differences in FRN waves between losses and gains, reflecting violations of expectancy to stock outcomes): (1) Self-chosen-other-owned stocks evoked significantly larger d-FRN discrepancies than self-chosen-self-owned stocks, indicating a greater expectancy violation to others' losses than to one's own, demonstrating a reversed ownership effect. Moreover, people high in conscientiousness showed an increase in this trend, suggesting a stronger other-consideration; (2) Self-chosen-self-owned stocks and other-chosen-self-owned stocks revealed no significant d-FRN discrepancy, showing no choosership effect beyond the ownership effect; (3) Other-chosen-self-owned stocks evoked a significantly stronger d-FRN discrepancy than other-chosen-other-owned stocks, demonstrating an ownership effect; (4) Self-chosen-other-owned stocks evoked a significantly stronger d-FRN discrepancy than other-chosen-other-owned stocks, revealing a choosership effect. These findings suggest that the ownership effect could be reversed by conscientiousness induced by perceived choosership in the agency relationship, while the choosership effect is attenuated and even disappears under the influence of perceived ownership.

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Previous neuroeconomic studies have observed that people display sympathetic neural responses toward others' misfortunes. We argue that the reverse emotions, such as gloating or schadenfreude, may also emerge in certain circumstances. To examine this theory, we recorded feedback-related negativity (FRN) toward others' large or small gains or losses in a stock market context. We adopted the framework of social distance, according to which we hypothesized that because others in the stock market are far away, unidentified, and indistinct, people would show less sympathy or even schadenfreude toward others' large losses. The results indicated that FRN at Fz was significantly less negative when observing larger decreases in others' stock, indicating that others' large losses are not unexpected negative events in the stock market and suggesting the existence of schadenfreude. Our research contributes to the understanding of social neurofinance by demonstrating the schadenfreude effect in relation to the stock market. This study also provides new information regarding the relationship between FRN and the social emotions that form the expectations of gain and loss.

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