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Nucleus accumbens activation mediates the influence of reward cues on financial risk-taking

Author

Listed:
  • Knutson, Brian
  • Wimmer, G. Elliott
  • Kuhnen, Camelia
  • Winkielman, Piotr

Abstract

In functional magnetic resonance imaging (FMRI) research, nucleus accumbens (NAcc) activation spontaneously increases prior to financial risk taking. Since anticipation of diverse rewards can increase NAcc activation, even incidental reward cues may influence financial risk-taking. Using event-related FMRI, we predicted and found that anticipation of viewing rewarding stimuli (erotic pictures for 15 heterosexual males) increased financial risk taking, and that this effect was partially mediated by increases in NAcc activation. These results are consistent with the notion that incidental reward cues influence financial risk taking by altering anticipatory affect, and so identify a neuropsychological mechanism that may underlie effective emotional appeals in financial, marketing, and political domains.

Suggested Citation

  • Knutson, Brian & Wimmer, G. Elliott & Kuhnen, Camelia & Winkielman, Piotr, 2008. "Nucleus accumbens activation mediates the influence of reward cues on financial risk-taking," MPRA Paper 8013, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:8013
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    File URL: https://mpra.ub.uni-muenchen.de/8013/1/MPRA_paper_8013.pdf
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    References listed on IDEAS

    as
    1. Camelia Kuhnen & Brian Knutson, 2005. "The Neural Basis of Financial Risk Taking," Experimental 0509001, University Library of Munich, Germany.
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    More about this item

    Keywords

    neuroeconomics; neurofinance; brain; financial risk taking; risk preferences; decision making; nucleus accumbens; striatum; reward cues; FMRI; brain imaging;
    All these keywords.

    JEL classification:

    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior

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