Social Risk Aversion Research Articles

Self-reported childhood family adversity is linked to an attenuated gain of trust during adolescence

A longstanding proposal in developmental research is that childhood family experiences provide a template that shapes a capacity for trust-based social relationships. We leveraged longitudinal data from a cohort of healthy adolescents (n = 570, aged 14–25), which included decision-making and psychometric data, to characterise normative developmental trajectories of trust behaviour and inter-individual differences therein. Extending on previous cross-sectional findings from the same cohort, we show that a task-based measure of trust increases longitudinally from adolescence into young adulthood. Computational modelling suggests this is due to a decrease in social risk aversion. Self-reported family adversity attenuates this developmental gain in trust behaviour, and within our computational model, this relates to a higher ‘irritability’ parameter in those reporting greater adversity. Unconditional trust at measurement time point T1 predicts the longitudinal trajectory of self-reported peer relation quality, particularly so for those with higher family adversity, consistent with trust acting as a resilience factor.

Examining the link between social exclusion and social-risk taking: a correlational and experimental investigation

Background: Previous research has consistently shown that social exclusion increases the proclivity for risk-taking. However, theoretical approaches like the Social Risk Hypothesis suggest that this relationship flips when confronted with social risks. Accordingly, the current study hypothesized that social exclusion decreases the propensity for social risks, in contrast to that for risks of other domains. Methods: To investigate this hypothesis, we conducted a correlational pre-study and an experimental main study. In the latter, we tested our assumption manipulating exclusion vs. inclusion using the Cyberball and Future-Life paradigms. Results: Results of the pre-study revealed that exclusion was linked to some forms of risk-taking, however, not to risk-taking in social domains. The main study showed that an experimental induced instance of social exclusion dampened the propensity for social risks. It further disclosed this effect’s boundary condition: When individuals were socially excluded to a more severe extent, they did not demonstrate such a risk-averse reaction. Moreover, we identified low dominance as a mediator for the dampening effect of exclusion on social risk-taking. Conclusions: These findings indicate that social risk aversion in the aftermath of social exclusion might be an adaptive strategy in the short-term because the prevention of social risks and humble behaviors reduce signals of threat and elicit signals of support. However, this strategy might also produce a vicious circle of exclusion and, thus, higher costs in the long-term.

Examining the link between social exclusion and social-risk taking: a correlational and experimental investigation

Background: Previous research has consistently shown that social exclusion increases the proclivity for risk-taking. However, theoretical approaches like the Social Risk Hypothesis suggest that this relationship flips when confronted with social risks. Accordingly, the current study hypothesized that social exclusion decreases the propensity for social risks, in contrast to that for risks of other domains. Methods: To investigate this hypothesis, we conducted a correlational Pre-Study and a Main Study. In the latter, we tested our assumption in an experimental approach, manipulating exclusion vs. inclusion using the Cyberball and Future-Life paradigms. Results: Results of the Pre-Study revealed that exclusion was linked to risk-taking in general, however, not to risk-taking in social domains. The Main Study showed that an experimental induced instance of social exclusion dampened the propensity for social risks. It further disclosed this effect’s boundary condition: When individuals were socially excluded to an extreme extent, they did not demonstrate such a risk-averse reaction. Moreover, we identified low dominance as a mediator for the dampening effect of exclusion on social risk-taking. Conclusions: These findings indicate that social risk aversion in the aftermath of social exclusion might be an adaptive strategy in the short-term because the prevention of social risks and humble behaviors reduce signals of threat and elicit signals of support. However, this strategy might also produce a vicious circle of exclusion and, thus, higher costs in the long-term.

A model of risk and mental state shifts during social interaction.

Cooperation and competition between human players in repeated microeconomic games offer a window onto social phenomena such as the establishment, breakdown and repair of trust. However, although a suitable starting point for the quantitative analysis of such games exists, namely the Interactive Partially Observable Markov Decision Process (I-POMDP), computational considerations and structural limitations have limited its application, and left unmodelled critical features of behavior in a canonical trust task. Here, we provide the first analysis of two central phenomena: a form of social risk-aversion exhibited by the player who is in control of the interaction in the game; and irritation or anger, potentially exhibited by both players. Irritation arises when partners apparently defect, and it potentially causes a precipitate breakdown in cooperation. Failing to model one’s partner’s propensity for it leads to substantial economic inefficiency. We illustrate these behaviours using evidence drawn from the play of large cohorts of healthy volunteers and patients. We show that for both cohorts, a particular subtype of player is largely responsible for the breakdown of trust, a finding which sheds new light on borderline personality disorder.

Self vs. Altercentric Selection into Structural Holes and the Psychological States of Brokers

From a cross-sectional view of social network structure, bridging positions are seen to be an asset due to the ability to receive information more quickly and arbitrage it across groups. However, we know relatively little about how ego’s trajectory into a structural hole impacts their psychological state. Seen from the point of view of an individual moving forward in social time and space, entry into a structural hole might be perceived to be less of a static resource than a move away from the comfort of an insulated group into less familiar social territory. I use a comprehensive database of over 30 million calendar meetings to measure changes in employee meeting networks, and show that within-person increases in network brokerage are associated with increased social risk aversion (avoidance goal orientation). On the other hand, moving into more closed, cohesive communities is associated with increased confidence about taking social risks. To control for self-selection into bridging positions, I estimate network brokerage separately for incoming and outgoing meeting invitations, and show that those who are altercentrically selected experience increased uncertainty, whereas, those who self-select, or actively bridge the structural hole are less impacted.

Response time in economic games reflects different types of decision conflict for prosocial and proself individuals

Behavioral and neuroscientific studies explore two pathways through which internalized social norms promote prosocial behavior. One pathway involves internal control of impulsive selfishness, and the other involves emotion-based prosocial preferences that are translated into behavior when they evade cognitive control for pursuing self-interest. We measured 443 participants' overall prosocial behavior in four economic games. Participants' predispositions [social value orientation (SVO)] were more strongly reflected in their overall game behavior when they made decisions quickly than when they spent a longer time. Prosocially (or selfishly) predisposed participants behaved less prosocially (or less selfishly) when they spent more time in decision making, such that their SVO prosociality yielded limited effects in actual behavior in their slow decisions. The increase (or decrease) in slower decision makers was prominent among consistent prosocials (or proselfs) whose strong preference for prosocial (or proself) goals would make it less likely to experience conflict between prosocial and proself goals. The strong effect of RT on behavior in consistent prosocials (or proselfs) suggests that conflict between prosocial and selfish goals alone is not responsible for slow decisions. Specifically, we found that contemplation of the risk of being exploited by others (social risk aversion) was partly responsible for making consistent prosocials (but not consistent proselfs) spend longer time in decision making and behave less prosocially. Conflict between means rather than between goals (immediate versus strategic pursuit of self-interest) was suggested to be responsible for the time-related increase in consistent proselfs' prosocial behavior. The findings of this study are generally in favor of the intuitive cooperation model of prosocial behavior.

Gender Differences, Social Loss Aversion and Sports Performance in Japanese Schoolchildren

In this paper, we investigated the relationship between social loss aversion and the competitive sports performance. We found that social loss aversion significantly affected the competitive sports performance in a homogeneous group of male students, but not female students, and that these effects were consistent across various sports drills. In particular, the gender of a reference person was pivotal to determining the effects of social loss aversion. We also showed that social risk aversion did not significantly affect performance in competitive sports drills.

Problems and solutions to filling the drying drug pipeline for psychiatric disorders: a report from the inaugural 2012 CINP Think Tank

The inaugural Collegium Internationale Neuro-Psychopharmacologicum (CINP) Think Tank, a small open meeting sponsored by the CINP, discussed impediments to developing new drugs for psychiatric disorders and approaches to overcome these impediments. Whilst neuropsycharmacology has a rich pharmacopeia (current treatments benefiting many individuals), issues of treatment resistance, sub-optimal response and unwanted side effects remain problematic. Many scientific, economic and social issues are impeding the development of drugs (e.g. higher risk of failure, placebo effects, problematic regulatory environments, pressures imposed by patent protection, downward pressure on reimbursements and financial, legal and social risk aversion). A consensus of the meeting was that efforts to understanding the core pathophysiology of psychiatric disorders are fundamental to increasing the chance of developing new drugs. However, findings from disorders such as Huntington's chorea, have shown that knowing the cause of a disorder may not reveal new drug targets. By contrast, clinically useful biomarkers that define target populations for new drugs and models that allow findings to be accurately translated from animals to humans will increase the likelihood of developing new drugs. In addition, a greater accent on experimental medicine, creative clinical investigations and improved communication between preclinical neuropsychopharmacologists, clinicians committed to neuropsychopharmacological research, industry and the regulators would also be a driver to the development of new treatments. Finally, it was agreed that the CINP must continue its role as a conduit facilitating vibrant interactions between industry and academia as such communications are a central component in identifying new drug targets, developing new drugs and transitioning new drugs into the clinic.

Earning and Saving Competences of Individuals in a Local Community in Poland

The aim of this paper is to identify variables that affect the capability of an individual to earn and save income. Our hypothesis is that besides demographic and human capital determinants, social, cultural and psychological variables affect strongly the individual’s earning and saving competences. We test our hypothesis using a method of decision tree (Exhaustive search Chi-squared Automatic Interaction Detection) to identify the earning and saving competences of individuals in Poland. In the decision tree analysis we found factors that are conducive for earning and saving. These factors includes: fairness, attitude towards cheating at exams, tolerance towards persons of different religion and different skin color, trust in judges and scientists, social risk aversion, evaluating own health status, asking for advice. This theoretical approach is applied to micro data from a Survey on Civilization Competences of individuals in local communities conducted in July-September 2009 in five regions of Poland.

Increasing marginal returns and the danger of collapse of commercially valuable fish stocks

On the basis of data from the North Sea herring fishery, we discuss the consequences of increasing marginal returns on the exploitation of renewable resources. We show that high, but still reasonable, discount rates can cause extinction to be optimal even in the ideal case of a sole owner and a resource with a high growth rate. In the case of lower discount rates, optimal cyclical policies can periodically drive the resource to levels approaching Safe Minimum Standards. We discuss the sustainability, intergenerational equity, social risk aversion, and theoretical issues raised by increasing marginal returns.

Is constructivism risky? Social anxiety, classroom participation, competitive game play and constructivist preferences in teacher development

Constructivism in practice is a challenging endeavor that invites teachers and students to engage in problems that elicit uncertainty. This article investigates the relationship between preferences for constructivist approaches and other classroom behaviors that influence the development of future teachers. The theoretical premise for this relationship is that preferences for constructivist activities are associated with other behaviors that are characterized as social risks. Preservice teachers who are ‘risk averse’ may engage in behaviors that perpetuate their conservatism, leaving them ill prepared for current developments in educational reform. In addition to proposing this unique theoretical question, evidence is presented showing that social risk aversion is behaviorally pervasive, influencing preservice teachers’ willingness to participate in classroom discussions, their behavior in a socially competitive game and their natural preference for inquiry‐based mathematics problems. Given this pervasiveness, teachers who are ‘shy’ of contemporary educational reform may unknowingly socially insulate themselves against it. Support strategies are suggested along with appropriate directions for future research and reflection by teacher educators.

The Use of Collateral in Gross and Net Payment Systems

The purpose of this paper is to make a comparative analysis of modern gross and net payment systems, emphasizing the implications of the availability of intraday liquidity in the former, and of collateral requirements in the latter. In contrast to previous models, an economy with two assets is described: eligible as collateral and not eligible, with the aim of being able to determine the implications of the requirement of these guarantees on banks' portfolio decisions—which affects their return—and on the probability and the consequences of a systemic crisis. This allows for comparison of the effects on social welfare of each of the two systems for different sets of parameters that characterize social risk aversion, opportunity set of banks, and the functioning of each settlement model. In a calibration exercise, it is shown how it would be legitimate for a benevolent authority to have a preference for a gross system, like TARGET, over a net system, like EURO1, for relatively high values, although plausible, of risk aversion.