Neural implications of investment banking experience in decision-making under risk and ambiguity.

Ortiz-Terán, Elena; Alonso, Tomás Ortiz; Turrero, Agustı́n; López-Pascual, Joaquín

doi:10.1037/npe0000100

Cited by 9 publications

(6 citation statements)

References 45 publications

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“…Decision theories and studies have deconstructed risk‐taking behavior under uncertainty into distinct choice parameters, specifically risk and ambiguity (Ellsberg, 1961; Feldmanhall, Glimcher, Baker, & Phelps, 2016; J. G. Johnson & Busemeyer, 2010; Knight, 1921; Ortiz‐Teran, Ortiz, Turrero, & Lopez‐Pascual, 2019; Tversky & Fox, 1995). The risk and ambiguity constructs have a deep conceptual distinction.…”

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confidence: 99%

Gender differences in the effects of competition and cooperation on risk‐taking under ambiguity

Liu

2020

PsyCh Journal

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Decision theories have made a distinction between risk (i.e., known probabilities) and ambiguity (i.e., unknown probabilities).Prior work has examined the effect of competition and cooperation on risk-taking under risk. However, little is known about whether and how competition and cooperation affect risk-taking under ambiguity and the role of gender in this effect. The current study addresses this research gap. In the present study, a shortened version of a balloon analogue risk task was used to assess risk-taking under ambiguity.The participants completed this task in competition against a peer, in cooperation with a peer, or alone. The results showed that the participants took more risks in the competition and cooperation conditions than in the individual condition, but no differences were found between the competition and cooperation conditions. More important, gender modulated these effects. First, these effects were driven by males, but not by females. Second, males showed more risk-taking under ambiguity than females in the competitive situation, but not in the cooperative situation. Overall, this work contributes to understanding the effect of social interaction on risky decisions under ambiguity.

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confidence: 99%

Gender differences in the effects of competition and cooperation on risk‐taking under ambiguity

Liu

2020

PsyCh Journal

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“…This may have biased participants to prefer a smaller loss. In addition, ambiguity may have influenced neural processes during the ICT, limiting the comparison to neuroimaging studies investigating pure delay discounting or risky decision-making ( Ikink et al, 2019 ; Ortiz-Teran et al, 2019 ). Another limitation is that the behavioral paradigm was not designed to directly contrast brain activation during the decision phase and the anticipation phase.…”

Section: Discussionmentioning

confidence: 99%

Comparing Discounting of Potentially Real Rewards and Losses by Means of Functional Magnetic Resonance Imaging

Pinger

Thome

Halli

et al. 2022

Front. Syst. Neurosci.

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AimDelay discounting (DD) has often been investigated in the context of decision making whereby individuals attribute decreasing value to rewards in the distant future. Less is known about DD in the context of negative consequences. The aim of this pilot study was to identify commonalities and differences between reward and loss discounting on the behavioral as well as the neural level by means of computational modeling and functional Magnetic Resonance Imaging (fMRI). We furthermore compared the neural activation between anticipation of rewards and losses.MethodWe conducted a study combining an intertemporal choice task for potentially real rewards and losses (decision-making) with a monetary incentive/loss delay task (reward/loss anticipation). Thirty healthy participants (age 18-35, 14 female) completed the study. In each trial, participants had to choose between a smaller immediate loss/win and a larger loss/win at a fixed delay of two weeks. Task-related brain activation was measured with fMRI.ResultsHyperbolic discounting parameters of loss and reward conditions were correlated (r = 0.56). During decision-making, BOLD activation was observed in the parietal and prefrontal cortex, with no differences between reward and loss conditions. During reward and loss anticipation, dissociable activation was observed in the striatum, the anterior insula and the anterior cingulate cortex.ConclusionWe observed behavior concurrent with DD in both the reward and loss condition, with evidence for similar behavioral and neural patterns in the two conditions. Intertemporal decision-making recruited the fronto-parietal network, whilst reward and loss anticipation were related to activation in the salience network. The interpretation of these findings may be limited to short delays and small monetary outcomes.

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“…Such inconsistencies in the literature may be the result of differences in how outcomes are realized across tasks 10 and integrated with potential future outcomes 17 . Characterizing the effect of previous outcomes is further complicated given that many studies involving trial-by-trial feedback do not examine the effect of previous outcome on risk-taking 18,19,[22][23][24][25][26][27][28][29][30] . While differences in experimental approaches may influence the directionality of previous outcome effects across studies, the replication of previous outcome effects within any given paradigm establishes that risky decision-making is sensitive to events occurring on the immediate timescale.…”

Section: Multiple Timescales Of Temporal Context Effects In Risky Dec...mentioning

confidence: 99%

Cognitive strategy use selectively changes temporal context effects in risky monetary decision-making

Brooks¹,

Sokol‐Hessner²

2023

Preprint

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Some of the most influential modern theories of risky monetary decision-making assume that choices result from stable, trait-like preferences, invariant to contextual influences such as recent events. Recent research has challenged this assumption, demonstrating that even when values and probabilities are explicit and known, decisions under risk are contextually sensitive, affected by recent events on multiple timescales, including immediate (previous monetary outcomes), neighborhood (recently encountered values), and global (cumulative earnings relative to dynamic expectations) events. Such temporal context-dependencies are perplexing, because relying on recent events at any timescale is inconsistent with the assumed goal of risky monetary decision-making: to maximize payoff. Identifying this suboptimal behavioral pattern raises the possibility it can be mitigated using behavioral change strategies. We tested whether the effects of temporal context in risk-taking can be attenuated with an intentional cognitive strategy. 124 participants completed two rounds of a contextually structured gambling task with trial-by-trial feedback, the Emotion Regulation Questionnaire, and working memory capacity tasks. Participants were randomly assigned to complete each gambling round with a strategy either emphasizing a natural, uncontrolled decision-making approach or directly instructing participants to ignore context. Instructions to ignore context influenced temporal context effects on the immediate timescale but did not change those on the neighborhood or global timescales. The strategy was not uniformly effective for all individuals. The cognitive strategy eliminated (and even reversed) contextual effects on the immediate timescale for individuals with moderate and high habitual use of reappraisal. However, the cognitive strategy paradoxically strengthened contextual effects on the immediate timescale for individuals with low habitual use of reappraisal. The selective effects of strategic control on contextual influence indicates both intriguing possibilities and limits on the ability to optimize human decision-making, and suggests that people do not simply maximize local utility, but rather that even simple risky decision-making may be fundamentally goal-dependent.

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Neural implications of investment banking experience in decision-making under risk and ambiguity.

Cited by 9 publications

References 45 publications

Gender differences in the effects of competition and cooperation on risk‐taking under ambiguity

Gender differences in the effects of competition and cooperation on risk‐taking under ambiguity

Comparing Discounting of Potentially Real Rewards and Losses by Means of Functional Magnetic Resonance Imaging

Cognitive strategy use selectively changes temporal context effects in risky monetary decision-making

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