Effect of uncertainty‐dependent residential mobility on loss aversion

Abstract

The current research aimed to examine the relationship between residential mobility and loss aversion, a ubiquitous decisionmaking bias conceptualized in prospect theory. Combining correlational, experimental, and electroencephalography approaches, we tested the hypothesis that residential mobility may increase loss aversion. The results revealed a positive correlation between residential mobility and loss aversion (Study 1). These effects were moderated by individuals' residential mobility/stability mindsets. Behaviorally, we observed a positive association between residential mobility history and loss aversion among individuals with a high (vs. low) subjective uncertainty after manipulating their residential mobility mindset by priming them with a mobile or stable lifestyle (Study 2). On the neural level, we found that the mindset of residential mobility (vs. stability) enhanced the differential feedback-related negativity (FRN) modulations between the large-win and large-loss conditions among Chinese participants with a high subjective uncertainty (Study 3). In conclusion, residential mobility elevated loss aversion by enhancing feelings of subjective uncertainty. Our findings provide novel insights into how changes in the socioecological environment shape individuals' decision-making bias.

Does losing money truly hurt? The shared neural bases of monetary loss and pain

“…Previous studies have detected neural activity related to monetary loss. The receipt of monetary loss activates a broad range of brain regions, including the anterior cingulate cortex (ACC), inferior frontal gyrus, medial frontal cortex, insula, cuneus, lingual gyrus, and parahippocampal gyrus (García, Filbey, Dunlop, & Myers, 2013 ; Kocsel et al, 2017 , 2019 ; Lauwereyns, Bjork, Smith, Chen, & Hommer, 2010 ; Luo et al, 2019 ; Ubl et al, 2015 ; Yan et al, 2016 ; Yu, Duan, Wu, & Luo, 2021 ; Yu, Wu, Huang, & Luo, 2020 ). Moreover, a meta‐analysis of monetary loss found that the outcome of monetary loss consistently activated the striatum and anterior cingulate gyri (Dugré, Dumais, Bitar, & Potvin, 2018 ).…”