De Martino et al (2006)

#stu

Aim

To explore the interaction of emotion in a financial decision-making task

Sample

A volunteer sample of 20 British undergraduates

Method

participants were asked to make financial decisions while their brain activity was monitored by (fMRI scanner). The information was presented either in terms of a loss or a gain. In the positive frame, participants were given the choice to gamble or keep a certain amount of money. Loss aversion predicts that people would prefer the sure option and keep the money. In the negative frame, participants were given the choice to gamble or experience a certain loss. Loss aversion predicts that people would prefer the risky gamble option in this case. The experiment examines how people's aversion to losses influences their decision-making.

Results

Participants were far more likely to choose to gamble in the negative frame condition, even though the options are in fact exactly the same as in the positive frame.
fMRI results demonstrated an interesting pattern of activity in the amygdala (central to emotion). Participants recorded a significant increase in activity whenever they selected the 'loss averse' option, regardless of the frame in use.

Conclusion

Participants were far more likely to choose to gamble in the negative frame condition, even though the options are in fact exactly the same as in the positive frame.

Evaluations

A key question for this study is the direction of causality. It is difficult to be sure if the emotion associated with increased activity in the amygdala is guiding decision-making or if it is a consequence of decision making. Either way, it is clear that emotion and decision-making are interacting.