Effects of the BAS and BIS on decision-making in a gambling task

Kim, Deok-Yong; Lee, Jang-Han

doi:10.1016/j.paid.2011.01.041

Cited by 53 publications

(49 citation statements)

References 25 publications

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“…Further, high BAS traders responded to positive shocks by increasing the frequency of scalping trades (although not their scalping profits). In line with prior research that has pointed to high BAS individuals' more pronounced (over-)confidence (Kim and Lee, 2011), we speculate that a possible reason for this behavior is that high BAS investors might be more (over-)confident regarding their trading skills and/or understanding of the implications of the shock, compared to low BAS individuals.…”

Section: General Discussion and Conclusionsupporting

confidence: 87%

“…Despite their fundamental nature, no study has, to date, analyzed their influence on financial decision making. To the best of our knowledge, only three studies have examined their impact on economic decision making, and all of them did so in different task environments (gambling tasks) (Van Honk et al, 2002;Franken and Muris, 2005;Kim and Lee, 2011). Scholars argue that much of human behavior is driven by these two systems, and that individuals differ in the sensitivity of their BAS and BIS to environmental signals of reward and punishment (Carver and White, 1994;Depue and Iacono 1989;Fowles, 1980Fowles, , 1993Gray, 1982Gray, , 1987.…”

Section: Introductionmentioning

confidence: 99%

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Fight or freeze? Individual differences in investors’ motivational systems and trading in experimental asset markets

Muehlfeld¹,

Weitzel²,

Witteloostuijn³

2013

Journal of Economic Psychology

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We analyze investors' trading behavior, particularly their coping with fundamental shocks in asset value, depending on individual differences in the sensitivity of two basic neurophysiological systems-the Behavioral Approach System (BAS), the 'driving force' of human behavior, and the Behavioral Inhibition System (BIS), its 'braking system'. By analyzing 15 independent experimental asset markets with a total of 171 participants, we find that differences in BAS and BIS sensitivity affect trading in both 'normal' and shocktrading environments: under normal trading conditions, individuals with a more sensitive BAS are more active traders, prefer riskier portfolios, and generate higher individual overall profits. High BIS subjects generate lower scalping and overall profits. Fundamental shocks generally reinforce the preference of high BAS investors for riskier portfolios, while positive shocks 'unfreeze' high BIS investors: they trade more frequently and generate higher profits. At the market level, normal trading in markets with a high BIS median is associated with lower volatility, compared to low BIS median markets, while greater concentration of traders' BAS scores around the mean is associated with better efficiency and liquidity, compared to markets with lower BAS kurtosis. In high BIS median markets, positive shocks lead to improved efficiency, lower bid-ask spread, and lower volatility. We observe no significant differences in market-level reactions to negative shocks.

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Section: General Discussion and Conclusionsupporting

confidence: 87%

Section: Introductionmentioning

confidence: 99%

Fight or freeze? Individual differences in investors’ motivational systems and trading in experimental asset markets

Muehlfeld¹,

Weitzel²,

Witteloostuijn³

2013

Journal of Economic Psychology

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show abstract

“…Grossman & Owens, 2012). In addition, Kim and Lee (2011) in their gambling study have found that (a) low BAS and high BIS individuals make less risky decisions after a losing condition, whereas in the same condition (b) high BAS individuals bet larger amounts. On the contrary, high BIS individuals experience higher negative affect following the negative performance (Ilies, Judge, & Wagner, 2010;Krupić & Corr, 2014), which may decrease their self-efficiency.…”

Section: Reinforcement Sensitivity Theorymentioning

confidence: 94%

“…Dunlowsky & Rawson, 2012), narcissistic (e.g. Campbell et al, 2004), and high BAS and low BIS individuals (Kim & Lee, 2011). Third, overconfident and high BAS individuals should maintain motivation and self-efficacy after a negative feedback, what is found in overconfident individuals (e.g.…”

Section: Reinforcement Sensitivity Theorymentioning

confidence: 98%

High Bas and Low Bis in Overconfidence, and Their Impact on Motivation and Self-Efficacy After Positive and Negative Performance

Krupić¹

2017

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Self-confidence, motivation, and performance outcome are vital for goal-directed behaviour. However, people do not react to a positive and negative performance in the same way. This study examines (a) the relationship between self-confidence and approach/avoidance motivation, and (b) how approach-and avoidance-oriented individuals respond to a performance outcome. The study was conducted on 93 participants. The first part of the study examined the relationship between self-confidence and approach/avoidance motivation within Reinforcement sensitivity theory, while the second part examined changes in motivation and self-efficiency in overconfident, avoidance-and approach-oriented individuals, following the positive and negative performance. Approach and avoidance tendencies were assessed by Reinforcement Sensitivity Questionnaire (RSQ) and Sensitivity to Punishment Sensitivity to Reward Questionnaire (SPSRQ). Correlational analysis showed that the Behavioural Approach System (BAS) and Sensitivity to Reward (SR) correlated positively, while Behavioural Inhibition System (BIS) and Sensitivity to Punishment (SP) correlated negatively with confidence. In addition, moderated regression analysis showed that (a) high BIS, SP and SR individuals were strongly demotivated following the negative performance, (b) while overconfident and high BAS individuals maintained their initial motivation. On the other hand, motivation in high SR, but not in the high BAS and overconfident individuals, increased after the positive performance. None of the scales predicted the change of self-efficacy either after the positive or negative performance. High BAS and low BIS in overconfident individuals may explain why they strive more toward the final goal despite drawbacks. The theoretical and practical implications of findings are discussed in the paper.

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“…Asimismo, se ha sugerido que los rasgos de personalidad podrían también desempeñar un papel importante en el proceso de toma de decisiones (Kim y Lee, 2011).…”

Section: Introductionunclassified

Ansiedad y toma de decisiones en la Iowa Gambling Task

Fonfría¹,

Cabedo²,

Gil³

et al. 2015

AgoraSalut

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ResumenLa hipótesis de los marcadores somáticos propone que la emoción influye en la toma de decisiones mediante señales corporales que indican las consecuencias a largo plazo de una determinada elección. Estudios previos no concluyentes han mostrado que la ansiedad podría influir en el proceso de toma de decisiones. Con el objeto de investigar esta relación, una muestra de 54 estudiantes universitarias clasificadas en dos grupos extremos de ansiedad a partir de sus puntuaciones en la escala Sensitivity to Punishment (sP) del cuestionario sPsRQ realizaron la Iowa Gambling Task (igt). La igt simula la toma de decisiones en la vida real en términos de recompensa, castigo e incertidumbre, a través de una secuencia de elecciones de cartas de cuatro mazos diferentes con el objetivo de ganar dinero. Además de considerar el rendimiento conductual en la tarea, se registraron las respuestas de conductancia de la piel antes y después de cada elección, como medida de la activación psicofisiológica. Los resultados mostraron * Esta investigación ha sido posible gracias a la financiación de los proyectos seJ2007-61742 del Ministerio de ciencia e Innovación y Psi2011-22559 del Ministerio de Economía y Competitividad. Correspondencia: Javier

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Effects of the BAS and BIS on decision-making in a gambling task

Cited by 53 publications

References 25 publications

Fight or freeze? Individual differences in investors’ motivational systems and trading in experimental asset markets

Fight or freeze? Individual differences in investors’ motivational systems and trading in experimental asset markets

High Bas and Low Bis in Overconfidence, and Their Impact on Motivation and Self-Efficacy After Positive and Negative Performance

Ansiedad y toma de decisiones en la Iowa Gambling Task

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