Neural predictors of risky behaviour.

In risky decision-making scenarios people are generally risk averse, however, when deciding in loss situations they often become risk-seeking. This preference reversal, often attributed to loss aversion, is termed the reflection effect (Tversky & Kahneman, 1981). This study explored the processes underlying the reflection effect by investigating risky decision-making following real losses and gains. Specifically, is there a neural mechanism that predicts the observed preference reversals for risky decisions following gains and losses? We predicted brain areas involved in both evaluating losses and in the subsequent adjustment in behaviour (e.g. anterior cingulate cortex, medial frontal cortex, anterior insula, inferior frontal gyrus) would be related to preference reversals. Participants (n=26) played a task while undergoing fMRI in which they experienced either small losses or small gains. Following each individual gain or loss, participants could choose a gamble that would either compensate for or double their loss (after an initial loss) or either double or eliminate their gain (after an initial gain). Results demonstrated behaviour predicted by the reflection effect; participants switched their risk preferences depending on the initial gain or loss. Moreover, this behaviour was reflected in enhanced activity in the anterior cingulate cortex and medial frontal cortex. These results support a proposed role of these areas in adaptive behavioural control involving risky decisions and demonstrate that such behavioural control is strongly context dependent. [ABSTRACT FROM AUTHOR]