scholarly journals Testosterone increases risk-taking for status but not for money

2020 ◽  
Author(s):  
Annabel B Losecaat Vermeer ◽  
Maarten Boksem ◽  
Christian Gausterer ◽  
Christoph Eisenegger ◽  
Claus Lamm
Keyword(s):  
Social Status ◽  
Risk Taking ◽  
Risk Preferences ◽  
Social Rank ◽  
Increased Risk ◽  
Status Seeking ◽  
Increase Risk ◽  
Testosterone Administration ◽  
Gains And Losses

Testosterone has long been thought to increase risk-taking, but evidence supporting this association is mixed. Instead, testosterone’s key role may be to promote status-seeking behaviors. Here, we examined to what extent testosterone administration affects risk preferences for both monetary and social status outcomes, and whether this relationship is moderated by an individuals’ social status. Male participants (N=166) experienced high or low status in a competition task and then played two risk tasks; one involving gambles with only monetary outcomes, and another one involving gambles with non-monetary outcomes that influenced their social rank. We found that testosterone (vs. placebo) altered risk preferences for gains and losses in social rank, but not for monetary gains and losses. Specifically, testosterone increased risk-taking to increase social rank in individuals with high, but not low social status. These results demonstrate a context-dependent role of testosterone in regulating risk-taking for social status.

scholarly journals A Bayesian Modelling Approach to Examine the Role of Testosterone Administration on the Endowment Effect and Risk-Taking

2021 ◽  
Author(s):  
Mikhail Votinov ◽  
Irina S Knyazeva ◽  
Ute Habel ◽  
Kerstin Konrad ◽  
Andrei A. Puiu
Keyword(s):  
Decision Making ◽  
Risk Taking ◽  
Serum Testosterone ◽  
Endowment Effect ◽  
Double Blind ◽  
Transdermal Application ◽  
Increased Risk ◽  
Binary Choices ◽  
Testosterone Administration

We investigated the effects of testosterone administration on aspects of decision-making within the Prospect Theory framework. Using bayesian modeling, we assessed risk-taking under framing and Endowment Effect (effect of possession). We administered 100mg testosterone to forty men in a double-blind placebo-controlled fully-randomized cross-over experiment where they participated in two tasks. One was a risktaking task with binary choices under positive and negative framing with different probabilities. In a second task, participants had to bid for for two categories of items, hedonic and utilitarian. We observed a significant increase in serum testosterone concentrations after transdermal application. Compared to placebo, testosterone administration increased risk-taking under the positive framing and decreased under the negative framing. The sensitivity to gain was positive in each framing. Our model showed that decision-making is jointly influenced by testosterone and the trade-off between gains and losses. Moreover, while the endowment effect was more pronounced for hedonic than for utilitarian items, the effect was independent of testosterone. The findings provide novel information for the complex modulatory role of testosterone on risk-taking. The proposed models of effects of individual differences in testosterone on risk-taking could be used as predictive models.

scholarly journals The Function and Role in the IBAN Social Rank in their Communities

2018 ◽  
Vol 7 (2.29) ◽  
pp. 639
Author(s):  
Fujica Anak Anggo ◽  
Louis Laja
Keyword(s):  
Social Status ◽  
Social Rank ◽  
The State ◽  
16Th Century ◽  
Young Generation ◽  
General Knowledge ◽  
West Kalimantan ◽  
Traditional Belief ◽  
The Status

The Sea Dayaks, better known as the Ibans, inhabit nearly the whole of Sarawak. The Ibans belong to the Proto-Malay groups and historically, they were from the Kapuas Valley in West Kalimantan, Indonesia. They migrated to Sarawak about fifteen generations ago in the mid 16th century (the 1630s). They went to the state through the Kumpang Valley and inhabit Batang Ai and then split to several places in Sarawak (Morgan, 1968). Although the Ibans have a social status in their traditional belief, they do not have a hierarchy of social status such as the Orang Ulu. However, they have elevated the status so-called Pengulu, Tuai Rumah, Tuai Burung, Lemambang, Manang, Beliau, Tukang Sabak, dan Indu Takar. The era of modernization has led to changes to the knowledge of the young generation, especially the younger generation of the Ibans who lack knowledge about the function and role of each rank status in their communities. Therefore, this study was conducted qualitatively through an interview with expert informants, observation, and documentation. This research was hoped to contribute to the general knowledge of the Iban community and other communities in the preservation of the function and role of each social status in the Iban community.  

The Role of Parental Monitoring in Mediating the Link Between Adolescent ADHD Symptoms and Risk-Taking Behavior

2017 ◽  
Vol 24 (8) ◽  
pp. 1141-1147 ◽  
Author(s):  
Yehuda Pollak ◽  
Bella Poni ◽  
Naama Gershy ◽  
Adi Aran
Keyword(s):  
Risk Taking ◽  
Parental Monitoring ◽  
Parental Knowledge ◽  
Adhd Symptoms ◽  
Increased Risk ◽  
Reduce Risk ◽  
Risk Taking Behavior ◽  
Risk Taking Behaviors ◽  
Youth With Adhd

Objective: ADHD in adolescents and low level of parental monitoring have been associated with increased risk-taking behavior. The present study examined whether parental knowledge of the child’s whereabouts mediates the correlations between adolescent ADHD symptoms and risk-taking behavior. Method: Ninety-two adolescents and their parents completed questionnaires assessing perceptions of parents’ monitoring, engagement in risk-taking behaviors, and ADHD symptoms. Results: Greater engagement in risk-taking behavior correlated with higher levels of ADHD symptoms and decreased parental monitoring. Mediation analysis revealed both direct effect of ADHD symptoms on risk-taking behavior and an indirect effect mediated by level of parental knowledge. Conclusion: These findings suggest that parental knowledge is negatively affected by the presence of ADHD symptoms, and may in turn lead to risk-taking behavior. The findings emphasize the need to target parenting and in particular parental knowledge of the child’s whereabouts to reduce risk-taking behaviors among youth with ADHD.

Does Pressure from the Work Community Increase Risk Taking?

1995 ◽  
Vol 77 (3_suppl) ◽  
pp. 1247-1250 ◽  
Author(s):  
Simo Salminen
Keyword(s):  
Risk Taking ◽  
Risk Theory ◽  
Occupational Accidents ◽  
Increased Risk ◽  
Significant Difference ◽  
Work Community ◽  
Increase Risk ◽  
Risk Takers

Based on the zero-risk theory, it was assumed that the pressure created by the work community is an “extra motive” for increased risk taking. The pressure from the work community was operationalized as the influence of coworkers, foremen, and customers. A risk-taking scale was constructed based on the interviews of 72 victims of serious occupational accidents. Analysis did not confirm the hypothesis because there was no significant difference between risk takers and risk avoiders in the influence of coworkers, foremen, and customers. The pressure of the work community may not be such an “extra motive” as the zero-risk theory assumes.

scholarly journals Institutional Investors, Past Performance, and Dynamic Loss Aversion

2009 ◽  
Vol 44 (1) ◽  
pp. 155-188 ◽  
Author(s):  
Paul G. J. O’Connell ◽  
Melvyn Teo
Keyword(s):  
Risk Taking ◽  
Loss Aversion ◽  
Institutional Investors ◽  
Disposition Effect ◽  
Past Performance ◽  
Increase Risk ◽  
Reduce Risk ◽  
Proprietary Database ◽  
Dynamic Loss ◽  
Gains And Losses

AbstractUsing a proprietary database of currency trades, this paper explores the effects of trading gains and losses on risk-taking among large institutional investors. We find that institutional investors, unlike individuals, are not prone to the disposition effect. Instead, institutions aggressively reduce risk following losses and mildly increase risk following gains. This asymmetry is more pronounced later in the calendar year and among older and more experienced funds. We show that such performance dependence is consistent with dynamic loss aversion (Barberis, Huang, and Santos (2001)) and overconfidence. In addition, prior institutional gains and losses have palpable implications for future prices.

Development of Risk Taking: Contributions from Adolescent Testosterone and the Orbito-frontal Cortex

2013 ◽  
Vol 25 (12) ◽  
pp. 2141-2150 ◽  
Author(s):  
Jiska S. Peper ◽  
P. Cédric M. P. Koolschijn ◽  
Eveline A. Crone
Keyword(s):  
Individual Differences ◽  
Frontal Cortex ◽  
Risk Taking ◽  
Testosterone Level ◽  
Mediation Analysis ◽  
Normative Sample ◽  
Normative Development ◽  
Increased Risk ◽  
Neural Underpinnings

The role of puberty in the development of risk taking remains poorly understood. Here, in a normative sample of 268 participants between 8 and 25 years old, we applied a psycho-endocrine neuroimaging approach to investigate the contribution of testosterone levels and OFC morphology to individual differences in risk taking. Risk taking was measured with the balloon analogue risk-taking task. We found that, corrected for age, higher endogenous testosterone level was related to increased risk taking in boys (more explosions) and girls (more money earned). In addition, a smaller medial OFC volume in boys and larger OFC surface area in girls related to more risk taking. A mediation analysis indicated that OFC morphology partly mediates the association between testosterone level and risk taking, independent of age. Mediation was found in such a way that a smaller medial OFC in boys potentiates the association between testosterone and risk taking but suppresses the association in girls. This study provides insights into endocrinological and neural underpinnings of normative development of risk taking, by indicating that OFC morphology, at least partly, mediates the association between testosterone and risk-taking behavior.

scholarly journals Effects of Testosterone Administration on Strategic Gambling in Poker Play

2016 ◽  
Vol 6 (1) ◽  
Author(s):  
Jack van Honk ◽  
Geert-Jan Will ◽  
David Terburg ◽  
Werner Raub ◽  
Christoph Eisenegger ◽  
...  
Keyword(s):  
Single Dose ◽  
Social Status ◽  
Young Women ◽  
Economic Resources ◽  
The Other ◽  
Poker Game ◽  
Status Seeking ◽  
Testosterone Administration ◽  
Cooperative Behaviors ◽  
Profit Maximizing

Abstract Testosterone has been associated with economically egoistic and materialistic behaviors, but -defensibly driven by reputable status seeking- also with economically fair, generous and cooperative behaviors. Problematically, social status and economic resources are inextricably intertwined in humans, thus testosterone’s primal motives are concealed. We critically addressed this issue by performing a placebo-controlled single-dose testosterone administration in young women, who played a game of bluff poker wherein concerns for status and resources collide. The profit-maximizing strategy in this game is to mislead the other players by bluffing randomly (independent of strength of the hand), thus also when holding very poor cards (cold bluffing). The profit-maximizing strategy also dictates the players in this poker game to never call the other players’ bluffs. For reputable-status seeking these materialistic strategies are disadvantageous; firstly, being caught cold bluffing damages one’s reputation by revealing deceptive intent and secondly, not calling the other players’ bluffs signals submission in blindly tolerating deception. Here we show that testosterone administration in this game of bluff poker significantly reduces random bluffing, as well as cold bluffing, while significantly increasing calling. Our data suggest that testosterone in humans primarily motivates for reputable-status seeking, even when this elicits behaviors that are economically disadvantageous.

scholarly journals Exogenous testosterone increases status-seeking motivation in men with unstable low social status

2019 ◽  
Author(s):  
Annabel B Losecaat Vermeer ◽  
Isabelle Krol ◽  
Christian Gausterer ◽  
Bernhard Wagner ◽  
Christoph Eisenegger ◽  
...  
Keyword(s):  
Social Status ◽  
Cag Repeat ◽  
Low Rank ◽  
High Status ◽  
Dependent Manner ◽  
Status Seeking ◽  
The Status ◽  
Testosterone Administration ◽  
The Stability ◽  
Competition Behavior

Testosterone is associated with status-seeking behaviors such as competition, which may depend on whether one wins or loses status, but also on the stability of one’s status. We examined (1) to what extent testosterone administration affects competition behavior in repeated social contests in men with high or low rank, and (2), whether this relationship is moderated by hierarchy stability, as predicted by the status instability hypothesis. Using a real effort-based design in healthy male participants (N = 173 males), we first found that testosterone (vs. placebo) increased motivation to compete for status, but only in individuals with a low unstable status. A second part of the experiment, tailored to directly compare stable with unstable hierarchies, indicated that exogenous testosterone again increased competitive motivation in individuals with a low unstable status, but decreased competition behavior in men with low stable status. Additionally, exogenous testosterone increased motivation in those with a stable high status. Further analysis suggested that these effects were moderated by individuals’ trait dominance, and genetic differences assessed by the androgen receptor (CAG-repeat) and dopamine transporter (DAT1) polymorphisms. Our study provides evidence that testosterone specifically boosts status-related motivation when there is an opportunity to improve one’s social status. The findings contribute to our understanding of testosterone’s causal role in status-seeking motivation in competition behavior, and indicate that testosterone adaptively increases our drive for high status in a context-dependent manner. We discuss potential neurobiological pathways through which testosterone may attain these effects on behavior.

Commodities and Derivatives, 2007–20

2020 ◽  
pp. 449-480
Author(s):  
Ranald C. Michie
Keyword(s):  
Risk Taking ◽  
First Century ◽  
Financial Products ◽  
Reference Prices ◽  
Increased Risk ◽  
Twenty First Century

By the beginning of the twenty-first century the role of commodity exchanges was to set reference prices for both commodities and financial products. Actual trading took place directly between producers and consumers or buyers and sellers. The exchanges provided heavily traded standardized contracts that were highly liquid, but charged for the service they provided and imposed strict rules and regulations. In contrast, direct trading between buyers and sellers was conducted free of charge and customized to suit the interests of particular buyers and sellers. It was those contracts traded away from the exchanges that many blamed for the crisis because of their contribution to increased risk taking. As a result there were moves to ban such contracts and to bring all derivatives trading onto regulated exchanges. However, derivatives proved to be essential features of volatile markets and exchanges were unable to provide the ease and flexibility that users found in the OTC market. As a result the derivatives market recovered from the crisis as the products it provided remained indispensable.

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