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Gains and Losses: A Common Neural Network for Economic Behaviour

Author

Listed:
  • Valeria Faralla
  • Francesca Benuzzi
  • Fausta Lui
  • Patrizia Baraldi
  • Paolo Nichelli
  • Nicola Dimitri

Abstract

Event-related functional magnetic resonance imaging was used to investigate the neural mechanisms underlying intertemporal preference for symmetric gains and losses in certain conditions, by asking subjects to choose between two gains or two losses available at different points in time. Our data suggest that a common system is activated when an immediate reward/punishment is available, irrespectively of the impulsive /reflective behaviour performed by the individual.

Suggested Citation

  • Valeria Faralla & Francesca Benuzzi & Fausta Lui & Patrizia Baraldi & Paolo Nichelli & Nicola Dimitri, 2010. "Gains and Losses: A Common Neural Network for Economic Behaviour," Labsi Experimental Economics Laboratory University of Siena 033, University of Siena.
    • Handle: RePEc:usi:labsit:033
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    References listed on IDEAS

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    7. George Loewenstein & Drazen Prelec, 1992. "Anomalies in Intertemporal Choice: Evidence and an Interpretation," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 107(2), pages 573-597.
    8. Jonathan D. Cohen & William M. Perlstein & Todd S. Braver & Leigh E. Nystrom & Douglas C. Noll & John Jonides & Edward E. Smith, 1997. "Temporal dynamics of brain activation during a working memory task," Nature, Nature, vol. 386(6625), pages 604-608, April.
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    More about this item

    Keywords

    intertemporal preferences; gains; losses; certainty;
    All these keywords.

    JEL classification:

    • D87 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Neuroeconomics
    • D90 - Microeconomics - - Micro-Based Behavioral Economics - - - General
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making

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