What you give is what you get : payment of one randomly selected trial induces risk-aversion and decreases brain responses to monetary feedback

In economic studies, it is standard practice to pay out the reward of only one randomly selected trial (pay-one) instead of the total reward accumulated across trials (pay-all), assuming that both methods are equivalent. We tested this assumption by recording electrophysiological activity to reward feedback from participants engaged in a decision-making task under both a pay-one and a pay-all condition. We show that participants are approximately 12% more risk averse in the pay-one condition than in the pay-all condition. Furthermore, we observed that the electrophysiological response to monetary rewards, the reward positivity, is significantly reduced in the pay-one condition relative to the pay-all condition. The difference of brain responses is associated with the difference in risky behavior across conditions. We concluded that the two payment methods lead to significantly different results and are therefore not equivalent

Digitalisierung der Landwirtschaft

DIGITALISIERUNG DER LANDWIRTSCHAFT Digitalisierung der Landwirtschaft / Kliem, Lea (Rights reserved) ( -

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