“If the risks are known, adolescents engage [in risk-taking] less than adults do, but if they are unknown, this is reversed,” says Agnieszka Tymula. In the study, both the adult and adolescent exhibited some risk aversion by choosing a certain amount of lotteries with a higher average payoff. These subjects varied, however, in the levels of risk aversion displayed. Though the adult subject always preferred the probability of receiving $125 over the certainty of receiving $5, the adolescent did not. However, this was not the case when the adolescents were unaware of the risk at hand. The analysis suggests that adolescents are technically more risk averse than adults, but in actuality, adolescents take more risks. This paradox is explained by the increased tolerance to ambiguity in adolescence. Adolescents do not choose to engage in risks, but rather they are willing to engage in risk when they do not realize the magnitude of the risk. This PNAS study was primarily supported by the fuzzy trace theory and the imbalance theory. The fuzzy trace theory identifies two basic processes: (i) a more precise form of risk-based analysis called “verbatim” thinking and (ii) a fuzzier “gist-based” method for reasoning about risk and reward. This theory hypothesizes that adolescents shift from verbatim to gist-based methods over cognitive development. Imbalance theory suggests that all decision makers rely on (i) a more precise frontocortical system and (ii) a less precise and emotionally driven limbic-based system. This theory finds that adolescents engage in more risky behaviors because the limbic system predominates during
“If the risks are known, adolescents engage [in risk-taking] less than adults do, but if they are unknown, this is reversed,” says Agnieszka Tymula. In the study, both the adult and adolescent exhibited some risk aversion by choosing a certain amount of lotteries with a higher average payoff. These subjects varied, however, in the levels of risk aversion displayed. Though the adult subject always preferred the probability of receiving $125 over the certainty of receiving $5, the adolescent did not. However, this was not the case when the adolescents were unaware of the risk at hand. The analysis suggests that adolescents are technically more risk averse than adults, but in actuality, adolescents take more risks. This paradox is explained by the increased tolerance to ambiguity in adolescence. Adolescents do not choose to engage in risks, but rather they are willing to engage in risk when they do not realize the magnitude of the risk. This PNAS study was primarily supported by the fuzzy trace theory and the imbalance theory. The fuzzy trace theory identifies two basic processes: (i) a more precise form of risk-based analysis called “verbatim” thinking and (ii) a fuzzier “gist-based” method for reasoning about risk and reward. This theory hypothesizes that adolescents shift from verbatim to gist-based methods over cognitive development. Imbalance theory suggests that all decision makers rely on (i) a more precise frontocortical system and (ii) a less precise and emotionally driven limbic-based system. This theory finds that adolescents engage in more risky behaviors because the limbic system predominates during