IDEAS home Printed from https://ideas.repec.org/a/plo/pone00/0008516.html
   My bibliography  Save this article

Monoamine Oxidase A Gene (MAOA) Associated with Attitude Towards Longshot Risks

Author

Listed:
  • Songfa Zhong
  • Salomon Israel
  • Hong Xue
  • Richard P Ebstein
  • Soo Hong Chew

Abstract

Decision making often entails longshot risks involving a small chance of receiving a substantial outcome. People tend to be risk preferring (averse) when facing longshot risks involving significant gains (losses). This differentiation towards longshot risks underpins the markets for lottery as well as for insurance. Both lottery and insurance have emerged since ancient times and continue to play a useful role in the modern economy. In this study, we observe subjects' incentivized choices in a controlled laboratory setting, and investigate their association with a widely studied, promoter-region repeat functional polymorphism in monoamine oxidase A gene (MAOA). We find that subjects with the high activity (4-repeat) allele are characterized by a preference for the longshot lottery and also less insurance purchasing than subjects with the low activity (3-repeat) allele. This is the first result to link attitude towards longshot risks to a specific gene. It complements recent findings on the neurobiological basis of economic risk taking.

Suggested Citation

  • Songfa Zhong & Salomon Israel & Hong Xue & Richard P Ebstein & Soo Hong Chew, 2009. "Monoamine Oxidase A Gene (MAOA) Associated with Attitude Towards Longshot Risks," PLOS ONE, Public Library of Science, vol. 4(12), pages 1-4, December.
    • Handle: RePEc:plo:pone00:0008516
    DOI: 10.1371/journal.pone.0008516
    as

    Download full text from publisher

    File URL: https://journals.plos.org/plosone/article?id=10.1371/journal.pone.0008516
    Download Restriction: no
    File URL: https://journals.plos.org/plosone/article/file?id=10.1371/journal.pone.0008516&type=printable
    Download Restriction: no
    File URL: https://libkey.io/10.1371/journal.pone.0008516?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Adam Booij & Bernard Praag & Gijs Kuilen, 2010. "A parametric analysis of prospect theory’s functionals for the general population," Theory and Decision, Springer, vol. 68(1), pages 115-148, February.
    2. Tversky, Amos & Kahneman, Daniel, 1992. "Advances in Prospect Theory: Cumulative Representation of Uncertainty," Journal of Risk and Uncertainty, Springer, vol. 5(4), pages 297-323, October.
    3. Camelia M Kuhnen & Joan Y Chiao, 2009. "Genetic Determinants of Financial Risk Taking," PLOS ONE, Public Library of Science, vol. 4(2), pages 1-4, February.
    4. Williams, Leighton Vaughan & Paton, David, 1997. "Why Is There a Favourite-Longshot Bias in British Racetrack Betting Markets?," Economic Journal, Royal Economic Society, vol. 107(440), pages 150-158, January.
    5. Brian E Roe & Michael R Tilley & Howard H Gu & David Q Beversdorf & Wolfgang Sadee & Timothy C Haab & Audrey C Papp, 2009. "Financial and Psychological Risk Attitudes Associated with Two Single Nucleotide Polymorphisms in the Nicotine Receptor (CHRNA4) Gene," PLOS ONE, Public Library of Science, vol. 4(8), pages 1-7, August.
    6. Daniel Kahneman & Amos Tversky, 2013. "Prospect Theory: An Analysis of Decision Under Risk," World Scientific Book Chapters, in: Leonard C MacLean & William T Ziemba (ed.), HANDBOOK OF THE FUNDAMENTALS OF FINANCIAL DECISION MAKING Part I, chapter 6, pages 99-127, World Scientific Publishing Co. Pte. Ltd..
    7. Soo Hong Chew & Guofu Tan, 2005. "The Market for Sweepstakes," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 72(4), pages 1009-1029.
    8. David Cesarini & Christopher T. Dawes & Magnus Johannesson & Paul Lichtenstein & Björn Wallace, 2009. "Genetic Variation in Preferences for Giving and Risk Taking," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 124(2), pages 809-842.
    9. Milton Friedman & L. J. Savage, 1948. "The Utility Analysis of Choices Involving Risk," Journal of Political Economy, University of Chicago Press, vol. 56(4), pages 279-279.
    10. Helga Fehr-Duda & Manuele Gennaro & Renate Schubert, 2006. "Gender, Financial Risk, and Probability Weights," Theory and Decision, Springer, vol. 60(2), pages 283-313, May.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Herold, Florian & Netzer, Nick, 2023. "Second-best probability weighting," Games and Economic Behavior, Elsevier, vol. 138(C), pages 112-125.
    2. De Neve, Jan-Emmanuel & Fowler, James H., 2014. "Credit card borrowing and the monoamine oxidase A (MAOA) gene," Journal of Economic Behavior & Organization, Elsevier, vol. 107(PB), pages 428-439.
    3. Andra C. Ghent & Marianna Kudlyak, 2015. "Intergenerational Linkages in Household Credit," Working Paper 15-14, Federal Reserve Bank of Richmond.
    4. Barnea, Amir & Cronqvist, Henrik & Siegel, Stephan, 2010. "Nature or nurture: What determines investor behavior?," Journal of Financial Economics, Elsevier, vol. 98(3), pages 583-604, December.
    5. Francisco Molins & Fatmanur Sahin & Miguel Ángel Serrano, 2022. "The Genetics of Risk Aversion: A Systematic Review," IJERPH, MDPI, vol. 19(21), pages 1-22, November.
    6. Steven F. Lehrer & Weili Ding, 2017. "Are genetic markers of interest for economic research?," IZA Journal of Labor Policy, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 6(1), pages 1-23, December.
    7. Nicos Nicolaou & Scott Shane, 2019. "Common genetic effects on risk-taking preferences and choices," Journal of Risk and Uncertainty, Springer, vol. 59(3), pages 261-279, December.
    8. Songfa Zhong & Salomon Israel & Idan Shalev & Hong Xue & Richard P Ebstein & Soo Hong Chew, 2010. "Dopamine D4 Receptor Gene Associated with Fairness Preference in Ultimatum Game," PLOS ONE, Public Library of Science, vol. 5(11), pages 1-8, November.
    9. Vanessa Mertins & Andrea B Schote & Wolfgang Hoffeld & Michele Griessmair & Jobst Meyer, 2011. "Genetic Susceptibility for Individual Cooperation Preferences: The Role of Monoamine Oxidase A Gene (MAOA) in the Voluntary Provision of Public Goods," PLOS ONE, Public Library of Science, vol. 6(6), pages 1-9, June.
    10. Wernerfelt, Nils Christian & Rand, David Gertler & Lum, J. Koji & Zeckhauser, Richard Jay & Dreber, Anna & Garcia, Justin, 2011. "The Dopamine Receptor D4 Gene (DRD4) and Self-Reported Risk Taking in the Economic Domain," Scholarly Articles 5347066, Harvard Kennedy School of Government.
    11. Da Silva, Sergio & Baldo, Dinora & Matsushita, Raul, 2011. "Biological correlates of the Allais paradox - updated," MPRA Paper 32747, University Library of Munich, Germany.
    12. Beaudreau, Bernard C., 2012. "A humanistic theory of economic behavior," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 41(2), pages 222-234.
    13. Levy, Moshe, 2015. "An evolutionary explanation for risk aversion," Journal of Economic Psychology, Elsevier, vol. 46(C), pages 51-61.
    14. Henrik Cronqvist & Florian Münkel & Stephan Siegel, 2014. "Genetics, Homeownership, and Home Location Choice," The Journal of Real Estate Finance and Economics, Springer, vol. 48(1), pages 79-111, January.
    15. Soo Chew & Richard Ebstein & Songfa Zhong, 2012. "Ambiguity aversion and familiarity bias: Evidence from behavioral and gene association studies," Journal of Risk and Uncertainty, Springer, vol. 44(1), pages 1-18, February.
    16. Chew, Soo Hong & Ebstein, Richard P. & Zhong, Songfa, 2013. "Sex-hormone genes and gender difference in ultimatum game: Experimental evidence from China and Israel," Journal of Economic Behavior & Organization, Elsevier, vol. 90(C), pages 28-42.
    17. Steve Sapra & Laura E Beavin & Paul J Zak, 2012. "A Combination of Dopamine Genes Predicts Success by Professional Wall Street Traders," PLOS ONE, Public Library of Science, vol. 7(1), pages 1-7, January.
    18. Cronqvist, Henrik & Siegel, Stephan & Yu, Frank, 2015. "Value versus growth investing: Why do different investors have different styles?," Journal of Financial Economics, Elsevier, vol. 117(2), pages 333-349.
    19. Sezen GÜNGÖR, 2019. "Genes Involved in both Dopaminergic and Serotonergic Pathways and Financial Decision Making," Prizren Social Science Journal, SHIKS, vol. 3(2), pages 21-26, August.
    20. Jonathan P. Beauchamp & David Cesarini & Magnus Johannesson & Matthijs J. H. M. van der Loos & Philipp D. Koellinger & Patrick J. F. Groenen & James H. Fowler & J. Niels Rosenquist & A. Roy Thurik & N, 2011. "Molecular Genetics and Economics," Journal of Economic Perspectives, American Economic Association, vol. 25(4), pages 57-82, Fall.
    21. Jonas Fooken & Markus Schaffner, 2013. "The role of psychological and physiological factors in decision making under risk and in a dilemma," QuBE Working Papers 010, QUT Business School.
    22. Moshe Levy, 2022. "An evolutionary explanation of the Allais paradox," Journal of Evolutionary Economics, Springer, vol. 32(5), pages 1545-1574, November.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Francisco Molins & Fatmanur Sahin & Miguel Ángel Serrano, 2022. "The Genetics of Risk Aversion: A Systematic Review," IJERPH, MDPI, vol. 19(21), pages 1-22, November.
    2. Martin Kukuk & Stefan Winter, 2008. "An Alternative Explanation of the Favorite-Longshot Bias," Journal of Gambling Business and Economics, University of Buckingham Press, vol. 2(2), pages 79-96, September.
    3. Syngjoo Choi & Jeongbin Kim & Eungik Lee & Jungmin Lee, 2022. "Probability Weighting and Cognitive Ability," Management Science, INFORMS, vol. 68(7), pages 5201-5215, July.
    4. Jakusch, Sven Thorsten, 2017. "On the applicability of maximum likelihood methods: From experimental to financial data," SAFE Working Paper Series 148, Leibniz Institute for Financial Research SAFE, revised 2017.
    5. Jakusch, Sven Thorsten & Meyer, Steffen & Hackethal, Andreas, 2019. "Taming models of prospect theory in the wild? Estimation of Vlcek and Hens (2011)," SAFE Working Paper Series 146, Leibniz Institute for Financial Research SAFE, revised 2019.
    6. Pavlo Blavatskyy & Ganna Pogrebna, 2008. "Risk Aversion when Gains are Likely and Unlikely: Evidence from a Natural Experiment with Large Stakes," Theory and Decision, Springer, vol. 64(2), pages 395-420, March.
    7. Levy, Moshe, 2015. "An evolutionary explanation for risk aversion," Journal of Economic Psychology, Elsevier, vol. 46(C), pages 51-61.
    8. Charles-Cadogan, G., 2016. "Expected utility theory and inner and outer measures of loss aversion," Journal of Mathematical Economics, Elsevier, vol. 63(C), pages 10-20.
    9. Kpegli, Yao Thibaut & Corgnet, Brice & Zylbersztejn, Adam, 2023. "All at once! A comprehensive and tractable semi-parametric method to elicit prospect theory components," Journal of Mathematical Economics, Elsevier, vol. 104(C).
    10. Attema, Arthur E. & Brouwer, Werner B.F. & l’Haridon, Olivier, 2013. "Prospect theory in the health domain: A quantitative assessment," Journal of Health Economics, Elsevier, vol. 32(6), pages 1057-1065.
    11. Laurent Denant-Boemont & Olivier L’Haridon, 2013. "La rationalité à l'épreuve de l'économie comportementale," Revue française d'économie, Presses de Sciences-Po, vol. 0(2), pages 35-89.
    12. Narat Charupat & Richard Deaves & Travis Derouin & Marcelo Klotzle & Peter Miu, 2013. "Emotional balance and probability weighting," Theory and Decision, Springer, vol. 75(1), pages 17-41, July.
    13. Géraldine Bocquého & Julien Jacob & Marielle Brunette, 2023. "Prospect theory in multiple price list experiments: further insights on behaviour in the loss domain," Theory and Decision, Springer, vol. 94(4), pages 593-636, May.
    14. Moshe Levy, 2022. "An evolutionary explanation of the Allais paradox," Journal of Evolutionary Economics, Springer, vol. 32(5), pages 1545-1574, November.
    15. Géraldine Bocquého & Julien Jacob & Marielle Brunette, 2020. "Prospect theory in experiments : behaviour in loss domain and framing effects," Working Papers hal-02987294, HAL.
    16. Charles-Cadogan, G., 2018. "Losses loom larger than gains and reference dependent preferences in Bernoulli’s utility function," Journal of Economic Behavior & Organization, Elsevier, vol. 154(C), pages 220-237.
    17. Stefan Winter & Martin Kukuk, 2008. "Do horses like vodka and sponging? - On market manipulation and the favourite-longshot bias," Applied Economics, Taylor & Francis Journals, vol. 40(1), pages 75-87.
    18. Songjia Fan & Yi Tao & Cong Li, 2022. "Evolutionary rationality of risk preference," Papers 2206.09813, arXiv.org.
    19. Soo Chew & Richard Ebstein & Songfa Zhong, 2012. "Ambiguity aversion and familiarity bias: Evidence from behavioral and gene association studies," Journal of Risk and Uncertainty, Springer, vol. 44(1), pages 1-18, February.
    20. Resende, José Guilherme Lara & Tecles, Patricia Langsch, 2011. "A Simple Method of Elicitation of Preferences under Risk," Brazilian Review of Econometrics, Sociedade Brasileira de Econometria - SBE, vol. 31(2), December.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:plo:pone00:0008516. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: plosone (email available below). General contact details of provider: https://journals.plos.org/plosone/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.