Abstract
Under standard models of expected utility, preferences over stochastic events are assumed to be independent of the source of uncertainty. Thus, in decision-making, an agent should exhibit consistent preferences, regardless of whether the uncertainty derives from the unpredictability of a random process or the unpredictability of a social partner. However, when a social partner is the source of uncertainty, social preferences can influence decisions over and above pure risk attitudes (RA). Here, we compared risk-related hemodynamic activity and individual preferences for two sets of options that differ only in the social or non-social nature of the risk. Risk preferences in social and non-social contexts were systematically related to neural activity during decision and outcome phases of each choice. Individuals who were more risk averse in the social context exhibited decreased risk-related activity in the amygdala during non-social decisions, while individuals who were more risk averse in the non-social context exhibited the opposite pattern. Differential risk preferences were similarly associated with hemodynamic activity in ventral striatum at the outcome of these decisions. These findings suggest that social preferences, including aversion to betrayal or exploitation by social partners, may be associated with variability in the response of these subcortical regions to social risk.
Highlights
A basic assumption of standard utility models (Von Neumann and Morgenstern, 1944) is that choices over uncertain outcomes are completely uninfluenced by the source of the uncertainty
The present study examines behavioral and neuronal differences between evaluating and acting on two sources of risk: one in which outcomes depend on a random non-social process and one in which outcomes depend on the action of another social agent
We found that risk attitudes (RA) in social and non-social contexts were correlated across subjects, which is consistent with the notion that social risk preferences are in part accounted for by risk preferences in non-social contexts
Summary
A basic assumption of standard utility models (Von Neumann and Morgenstern, 1944) is that choices over uncertain outcomes are (or should be) completely uninfluenced by the source of the uncertainty. Faced with an investment option known to yield a 10% return, an agent should make the same investment decision regardless of whether the historical outcomes were determined by a die roll, a roulette wheel, a horse race, a market, or a human partner. Trusting a social partner can be approached as a form of social investment involving risk. Trust implies investing a valued resource (be it money, time, emotions, or social capital) in another person or group, usually with the hope of reciprocation in the same or other form (Camerer and Weigelt, 1988). Decisions to trust a social partner might be influenced by one’s general attitude toward risk and be expected to scale with risk attitudes (RA) measured in non-social contexts. While a number of behavioral studies have provided empirical support for such a relationship (Karlan, 2005; Schechter, 2007), other work has suggested otherwise (Eckel and Wilson, 2004; Houser et al, 2010)
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
