↓ Skip to main content

The Effect of Wealth Shocks on Loss Aversion: Behavior and Neural Correlates

Overview of attention for article published in Frontiers in Neuroscience, April 2017
Altmetric Badge

About this Attention Score

  • Good Attention Score compared to outputs of the same age (68th percentile)
  • Above-average Attention Score compared to outputs of the same age and source (61st percentile)

Mentioned by

twitter
8 X users

Citations

dimensions_citation
7 Dimensions

Readers on

mendeley
44 Mendeley
You are seeing a free-to-access but limited selection of the activity Altmetric has collected about this research output. Click here to find out more.
Title
The Effect of Wealth Shocks on Loss Aversion: Behavior and Neural Correlates
Published in
Frontiers in Neuroscience, April 2017
DOI 10.3389/fnins.2017.00237
Pubmed ID
Authors

V. S. Chandrasekhar Pammi, Sergio Ruiz, Sangkyun Lee, Charles N. Noussair, Ranganatha Sitaram

Abstract

Kahneman and Tversky (1979) first demonstrated that when individuals decide whether or not to accept a gamble, potential losses receive more weight than possible gains in the decision. This phenomenon is referred to as loss aversion. We investigated how loss aversion in risky financial decisions is influenced by sudden changes to wealth, employing both behavioral and neurobiological measures. We implemented an fMRI experimental paradigm, based on that employed by Tom et al. (2007). There are two treatments, called RANDOM and CONTINGENT. In RANDOM, the baseline setting, the changes to wealth, referred to as wealth shocks in economics, are independent of the actual choices participants make. Under CONTINGENT, we induce the belief that the changes in income are a consequence of subjects' own decisions. The magnitudes and sequence of the shocks to wealth are identical between the CONTINGENT and RANDOM treatments. We investigated whether more loss aversion existed in one treatment than another. The behavioral results showed significantly greater loss aversion in CONTINGENT compared to RANDOM after a negative wealth shock. No differences were observed in the response to positive shocks. The fMRI results revealed a neural loss aversion network, comprising the bilateral striatum, amygdala and dorsal anterior cingulate cortex that was common to the CONTINGENT and RANDOM tasks. However, the ventral prefrontal cortex, primary somatosensory cortex and superior occipital cortex, showed greater activation in response to a negative change in wealth due to individual's own decisions than when the change was exogenous. These results indicate that striatum activation correlates with loss aversion independently of the source of the shock, and that the ventral prefrontal cortex (vPFC) codes the experimental manipulation of agency in one's actions influencing loss aversion.

X Demographics

X Demographics

The data shown below were collected from the profiles of 8 X users who shared this research output. Click here to find out more about how the information was compiled.
Mendeley readers

Mendeley readers

The data shown below were compiled from readership statistics for 44 Mendeley readers of this research output. Click here to see the associated Mendeley record.

Geographical breakdown

Country Count As %
Unknown 44 100%

Demographic breakdown

Readers by professional status Count As %
Student > Ph. D. Student 10 23%
Student > Master 6 14%
Professor > Associate Professor 3 7%
Student > Doctoral Student 2 5%
Student > Bachelor 2 5%
Other 9 20%
Unknown 12 27%
Readers by discipline Count As %
Psychology 8 18%
Economics, Econometrics and Finance 7 16%
Neuroscience 5 11%
Computer Science 2 5%
Biochemistry, Genetics and Molecular Biology 1 2%
Other 6 14%
Unknown 15 34%
Attention Score in Context

Attention Score in Context

This research output has an Altmetric Attention Score of 5. This is our high-level measure of the quality and quantity of online attention that it has received. This Attention Score, as well as the ranking and number of research outputs shown below, was calculated when the research output was last mentioned on 27 September 2017.
All research outputs
#6,850,695
of 25,382,440 outputs
Outputs from Frontiers in Neuroscience
#4,441
of 11,542 outputs
Outputs of similar age
#100,541
of 323,433 outputs
Outputs of similar age from Frontiers in Neuroscience
#80
of 209 outputs
Altmetric has tracked 25,382,440 research outputs across all sources so far. This one has received more attention than most of these and is in the 72nd percentile.
So far Altmetric has tracked 11,542 research outputs from this source. They typically receive a lot more attention than average, with a mean Attention Score of 11.0. This one has gotten more attention than average, scoring higher than 61% of its peers.
Older research outputs will score higher simply because they've had more time to accumulate mentions. To account for age we can compare this Altmetric Attention Score to the 323,433 tracked outputs that were published within six weeks on either side of this one in any source. This one has gotten more attention than average, scoring higher than 68% of its contemporaries.
We're also able to compare this research output to 209 others from the same source and published within six weeks on either side of this one. This one has gotten more attention than average, scoring higher than 61% of its contemporaries.