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11 Cards in this Set
- Front
- Back
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Definitions |
Expected value: the probability of the outcome times its associated reward Expected utility: the psychological value assigned to an outcome |
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Prospect Theory (Kahneman) |
• Reference dependence - we make decisions in terms of the anticipated gains/losses compared to our current states • Loss aversion - tendency for people to strongly prefer avoiding losses than acq gain • Pain from loss > Pleasure from gain |
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Reward & the Brain |
- Primary reinforce: food, water, sex (unconditioned) - Secondary reinforcer: money (conditioned) |
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In the brain... |
• Nigrostriatal pathway - substantia nigra -> thalamus & striatum • Mesolimbic pathway - ventral tegmental area -> nucleus accumbens & spinal cord & cortex |
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Intracranial Self-Stimulation |
• Olds & Milner: rat continuously pressed lever to stimulate pleasure • Dopamine neurons in the ventral tegmental area respond to "reward prediction error" (actual outcome - predicted outcome) |
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Temporal Discounting |
- Larger reward later or smaller sooner - McClure et al - 2 distinct neural processes 1. fast, automatic + context-dependent eg emotion based decision 2. slower, controlled + evidence-based eg decision based on deliberation |
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Results |
If smaller sooner chosen, beta areas higher If larger later chosen, delta areas higher - brain areas that track subjective value (utility) of reward, regardless of delay |
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Social Decision Making |
• Social rewards • In ultimatum task, unfair offer = anterior insula activity fMRI inequity study (Tricomi) • Transfer to self in poor group activated striatum • Transfer to other in rich group, same |
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Heuristics in Decision Making |
-> mental shortcut that allows people to solve problems and make judgements quickly --> can lead to biases |
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Example: Disease in a village |
If choices presented positively eg save 200 or kill 0 or presented negatively eg kills 400 or saves 0 • People tend to avoid risk when a pos frame is presented • Seeks risks when neg fram is presented |
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Framing Effect |
EG • 93% of students registered if late fee was implemented • 67 % students registered if discount for early reg was implemented Loss aversion: prefr to avoid loss/gain |
