scholarly journals Neural correlates of individual differences in aversion to risk and choice inconsistencies

2021 ◽  
Author(s):  
Manon E. Jaquerod ◽  
Alessandra Lintas ◽  
Gabriel Gratton ◽  
Monica Fabiani ◽  
Kathy A. Low ◽  
...  
Keyword(s):  
Risk Aversion ◽  
Brain Dynamics ◽  
Individual Choice ◽  
Brain Potentials ◽  
Behavioral Choice ◽  
Medial Frontal Negativity ◽  
Choice Consistency ◽  
Modes Of Processing ◽  
Frontal Negativity ◽  
The Individual

Most people tend to prefer smaller certain gains to large uncertain gains when making financial choices (risk aversion). However, attitudes toward risk vary greatly between individuals, and over time within individuals. Consistent behavior may reflect the adoption by the individual of a simple or automatized heuristic which reduces the subject's uncertainty about the outcome of a behavioral choice. In contrast inconsistent behavior may reflect the adoption of a "fuzzy" logic, likely leaving high levels of uncertainty in the participant making the choice. Therefore, inconsistent behavior may often be associated with greater risk aversion. The use of simple/automatized heuristics may also lead to increased reliance on fast brain processes, whereas fuzzy heuristic may lead to lingering uncertainty. These two modes of processing may therefore lead to different brain dynamics. To examine these dynamics we recorded event-related brain potentials (ERPs) from 22 adults participants engaged in a task requiring choices between certain (but often smaller) gains and an uncertain (but often bigger) gains. Behavioral analyses allowed us to quantify choice consistency and risk aversion for each individual. Choice consistency was related to the amplitude of P200; risk aversion was related to modulation of the medial frontal negativity (MFN) as a function of choice uncertainty, to the amplitude of a late positive potential (LPP). These findings are consistent with the idea that differences in individuals' behavior when making financial choices may reflect variations in the type of heuristics they adopt, which in turn may may be reflected in differences in brain dynamics.

Simple heuristics that make us dumb

2000 ◽  
Vol 23 (5) ◽  
pp. 758-758
Author(s):  
Howard Margolis
Keyword(s):  
Risk Aversion ◽  
Social Choice ◽  
Individual Choice ◽  
The Individual ◽  
Individual Choices ◽  
Simple Heuristics

The simple heuristics that may indeed usually make us smart–or at least smart enough–in contexts of individual choice will sometimes make us dumb, especially in contexts of social choice. Here each individual choice (or vote) has little impact on the overall choice, although the overall choice is compounded out of the individual choices. I use an example (risk aversion) to illustrate the point.

Medial Frontal Negativity (MFN)

2013 ◽  
pp. 1818-1818
Author(s):  
Tiffany Hutchins ◽  
Giacomo Vivanti ◽  
Natasa Mateljevic ◽  
Roger J. Jou ◽  
Frederick Shic ◽  
...  
Keyword(s):  
Medial Frontal Negativity ◽  
Frontal Negativity

scholarly journals Analysis of Economic Motives in the Individual Choice of Educational Paths

R-Economy ◽  
2015 ◽  
Vol 1 (1) ◽  
pp. 153-159
Author(s):  
V. A. Koksharov ◽  
G. A. Agarkov
Keyword(s):  
Individual Choice ◽  
Educational Paths ◽  
The Individual ◽  
Economic Motives

scholarly journals Internal Inconsistency and Risk Aversion: Implications on Smoking Decisions

2020 ◽  
Vol 29 (1) ◽  
pp. 387
Author(s):  
Ana I. Gil-Lacruz ◽  
Marta Gil-Lacruz
Keyword(s):  
Risk Aversion ◽  
Risk Behaviors ◽  
Internal Consistency ◽  
Social Recognition ◽  
Economic Conditions ◽  
Risk Averse ◽  
Internal Inconsistency ◽  
Individual Decisions ◽  
Internal Coherence ◽  
The Individual

The main contribution of this paper is an analysis of the nature of the link between internal coherence and risk aversion. Both variables play an important role in individual decisions concerning risk behaviors. We compare the levels of internal consistency and risk aversion among smokers and non-smokers. To measure the individual internal coherence and risk aversion; we use a survey that includes lottery questions. Our results confirm that smokers are consistent in their decisions and they behave as risk averse. These results should be treated with circumspection as lottery questions are based on monetary expectations that depend on socio-economic conditions and they obviate other dimensions such as social recognition.

scholarly journals The role of early prosthetic help in the system of rehabilitation of the military personnel with military trauma: organizational, legal and methodical aspects

2018 ◽  
Vol 20 (2) ◽  
pp. 40-47
Author(s):  
V G Suslyaev ◽  
O N Vladimirova ◽  
K K Shcherbina ◽  
A V Sokurov ◽  
Yu I Zhdanov ◽  
...  
Keyword(s):  
Artificial Limbs ◽  
Individual Choice ◽  
Disabled People ◽  
Express Method ◽  
Full Contact ◽  
Military Trauma ◽  
Recovery Treatment ◽  
Manufacturing Techniques ◽  
The Individual ◽  
And Training

The role and the place of early use of technical means of rehabilitation in the system of complex rehabilitation of patients and disabled people owing to a military trauma is considered. Need of early providing the needing persons with technical means of rehabilitation is proved during recovery treatment, including before establishment by him of disability and formation of the individual program of rehabilitation and an abilitation of disabled people. The efficiency of the developed non-plaster technology of prosthetics manufacturing techniques of artificial limbs of the lower extremities is proved by express method, options of her execution are offered. The first option of production of products on this technology consists in use of polymeric silicone covers and the water-hardening polymeric bandage directly on the patient’s stump. The second option of prosthetics is applied at some defects and diseases of a stump excluding application of silicone covers and full contact individual reception sleeves. For this purpose at production of medical and training artificial limbs of a shin and hip adjustable demountable reception sleeves from thermolayers for right-and left-side amputating defects are used. These options of prosthetics by express method are innovative, are aimed at early rendering the prosthetic and orthopedic help to patients with amputating defects. At production of artificial limbs on these technology domestic materials, modular and not modular accessories are used. The modular complete set of medical and training artificial limbs provides fast and individual setting up the scheme of construction, the individual choice of combinations of functional elements taking into account group of physical activity of the patient, a possibility of replacement of a reception sleeve and any of product elements without withdrawal of an artificial limb at the user. In need of service of a product, for example repair, replacement of the module (artificial foot, a knee) there is no requirement of urgent production of a similar design. Adjustable reception sleeves for primary artificial limbs of a shin and hip in the form of a standard series and moisture-curing bandage can add the list of products of medical appointment in laying for expansion of medical institutions during the special period.

International Migration and Power Relationships

2015 ◽  
pp. 80-93
Author(s):  
Shadrack B. Ramokgadi
Keyword(s):  
Civil Society ◽  
International Migration ◽  
Human Mobility ◽  
Regulatory Framework ◽  
Geographic Mobility ◽  
Power Relationships ◽  
Successful Implementation ◽  
Individual Choice ◽  
Regulatory Frameworks ◽  
The Individual

The individual choice to decide where to live bears directly on personal freedom, and the desire for survival and economic development. The right to geographic mobility is ideally safeguarded by international migration regulatory frameworks that derive from country-specific constitutions and inter-states arrangements. On the other hand, empirical evidence suggests that some countries restrict human mobility to take predetermined migration patterns. This chapter presents that the historical evolution in the relationship between the natural environment and human activities offers the opportunity to explore requirements for the successful implementation of any International Migration Regulatory Framework (IMRF). In doing so, the author contends that extant geopolitical conditions defining such relations need to be explored within state-centric political practices and civil society perceptions, put differently, through the dialogue between the state and civil society on migration processes necessary for successful implementation of regulatory framework while surfacing resources-power relationship between migratory states and citizens.

scholarly journals The Benefit-Cost Ratio as a Decision Criteria When Managing Catastrophes

2020 ◽  
Vol 77 (2) ◽  
pp. 345-363
Author(s):  
Kine Josefine Aurland-Bredesen
Keyword(s):  
Relative Risk ◽  
Willingness To Pay ◽  
Risk Aversion ◽  
Optimal Policy ◽  
Cost Ratio ◽  
Relative Risk Aversion ◽  
Decision Criteria ◽  
Benefit Cost Ratio ◽  
The Individual ◽  
Benefit Cost

Abstract Previous work has shown that when projects are non-marginal, it creates an interdependence among projects. This implies that policies to manage catastrophes should not be evaluated in isolation but in conjunction with each other. As long as relative risk aversion is sufficiently high, the benefits of averting one catastrophe depend positively on the background risk created by other catastrophes. This specific bias makes it possible to create upper and lower boundaries on the willingness to pay to manage catastrophes and the optimal policy. These boundaries can be used to make inferences on which catastrophes should be averted and not, and in which order. The upper and lower boundaries depend only on the individual catastrophe’s benefit-cost ratio and the coefficient of risk aversion, which both are easy to identify using standard economic frameworks.

scholarly journals Explaining Cooperative Behavior in Public Goods Games: How Preferences and Beliefs Affect Contribution Levels

Games ◽  
2019 ◽  
Vol 10 (1) ◽  
pp. 15 ◽  
Author(s):  
Kurt Ackermann ◽  
Ryan Murphy
Keyword(s):  
Public Goods ◽  
Social Preferences ◽  
Cooperative Behavior ◽  
Large Body ◽  
Individual Choice ◽  
Endogenous Factors ◽  
Individual Level ◽  
Repeated Interaction ◽  
Public Goods Games ◽  
The Individual

There is a large body of evidence showing that a substantial proportion of people cooperate in public goods games, even if the situation is one-shot and completely anonymous. In the present study, we bring together two major endogenous factors that are known to affect cooperation levels, and in so doing replicate and extend previous empirical research on public goods problems in several important ways. We measure social preferences and concurrently elicit beliefs on the individual level using multiple methods, and at multiple times during the experiment. With this rich set of predictor variables at the individual level, we test how well individual contribution decisions can be accounted for in both a one-shot and a repeated interaction. We show that when heterogeneity in people’s preferences and beliefs is taken into consideration, more than 50% of the variance in individual choice behavior can be explained. Furthermore, we show that people do not only update their beliefs in a repeated public goods game, but also that their social preferences change, to some extent, in response to the choices of other decision makers.

scholarly journals Roots of tolerance among second-generation immigrants

2019 ◽  
Vol 15 (6) ◽  
pp. 999-1016 ◽  
Author(s):  
Niclas Berggren ◽  
Martin Ljunge ◽  
Therese Nilsson
Keyword(s):  
Second Generation ◽  
Individual Choice ◽  
Reverse Causality ◽  
Instrumental Variable Analysis ◽  
Second Generation Immigrants ◽  
European Culture ◽  
Formal And Informal Institutions ◽  
Rigorous Study ◽  
The Individual ◽  
Rule Out

AbstractTolerance – respecting individual choice and differences among people – is a prominent feature of modern European culture. That immigrants embrace this kind of liberal value is arguably important for integration, a central policy goal. We provide a rigorous study of what factors in the ancestral countries of second-generation immigrants – including formal and informal institutions – predict their level of tolerance towards gay people. Using the epidemiological method allows us to rule out reverse causality. Out of the 46 factors examined, one emerges as very robust: a Muslim ancestral background. Tolerance towards gay people is lower the larger the share of Muslims in the country from which the parents emigrated. An instrumental-variable analysis shows that the main mechanism is not through the individual being a Muslim, but through the individual being highly religious. Two additional attitudes among people in the ancestral country (valuing children being tolerant and respectful, and valuing children taking responsibility), as well as impartial institutions in the ancestral country, predict higher individual tolerance. Our findings thus point to an important role for both formal- and informal-institutional background factors in shaping tolerance.

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