Neurobiological studies of risk assessment: A comparison of expected utility and mean-variance approaches

When modeling valuation under uncertainty, economists generally prefer expected utility because it has an axiomatic foundation, meaning that the resulting choices will satisfy a number of rationality requirements. In expected utility theory, values are computed by multiplying probabilities of each possible state of nature by the payoff in that state and summing the results. The drawback of this approach is that all state probabilities need to be dealt with separately, which becomes extremely cumbersome when it comes to learning. Finance academics and professionals, however, prefer to value risky prospects in terms of a trade-off between expected reward and risk, where the latter is usually measured in terms of reward variance. This mean-variance approach is fast and simple and greatly facilitates learning, but it impedes assigning values to new gambles on the basis of those of known ones. To date, it is unclear whether the human brain computes values in accordance with expected utility theory or with mean-variance analysis. In this article, we discuss the theoretical and empirical arguments that favor one or the other theory. We also propose a new experimental paradigm that could determine whether the human brain follows the expected utility or the mean-variance approach. Behavioral results of implementation of the paradigm are discusse

Adolescent Impulsivity: Findings From a Community Sample

Impulsivity is central to several psychopathological states in adolescence. However, there is little consensus concerning the definition of impulsivity and its core dimensions. In response to this lack of consensus, Whiteside and Lynam (2001, Pers. Individ. Differ. 30, 669-689) have developed the UPPS Impulsive Behavior Scale, which is able to distinguish 4 dimensions of impulsivity in adults: Urgency, lack of Premeditation, lack of Perseverance, and Sensation seeking. The question arises of whether these 4 dimensions also exist in adolescents and also of whether gender differences can be observed. A sample of teenagers (314 girls and 314 boys) completed a French version of the scale (Van der Linden et al., Eur. J. Psychol. Assess., 2005). Based on exploratory and confirmatory analyses, the 4-factor model is replicated in girls, boys, and the whole sample. Concerning gender differences, girls have a higher score for Urgency and boys a higher score for Sensation seeking. Overall, this study suggests that the UPPS is a promising tool for studying impulsivity in adolescenc

Memory for Angry Faces, Impulsivity, and Problematic Behavior in Adolescence

Research has shown that cognitive processes like the attribution of hostile intention or angry emotion to others contribute to the development and maintenance of conduct problems. However, the role of memory has been understudied in comparison with attribution biases. The aim of this study was thus to test if a memory bias for angry faces was related to conduct problems in youth. Adolescents from a junior secondary school were presented with angry and happy faces and were later asked to recognize the same faces with a neutral expression. They also completed an impulsivity questionnaire. A teacher assessed their behavior. The results showed that a better recognition of angry faces than happy faces predicted conduct problems and hyperactivity/inattention as reported by the teacher. The memory bias effect was more pronounced for impulsive adolescents. It is suggested that a memory bias for angry faces favors disruptive behavior but that a good ability to control impulses may moderate the negative impact of this bia

Activity in Inferior Parietal and Medial Prefrontal Cortex Signals the Accumulation of Evidence in a Probability Learning Task

In an uncertain environment, probabilities are key to predicting future events and making adaptive choices. However, little is known about how humans learn such probabilities and where and how they are encoded in the brain, especially when they concern more than two outcomes. During functional magnetic resonance imaging (fMRI), young adults learned the probabilities of uncertain stimuli through repetitive sampling. Stimuli represented payoffs and participants had to predict their occurrence to maximize their earnings. Choices indicated loss and risk aversion but unbiased estimation of probabilities. BOLD response in medial prefrontal cortex and angular gyri increased linearly with the probability of the currently observed stimulus, untainted by its value. Connectivity analyses during rest and task revealed that these regions belonged to the default mode network. The activation of past outcomes in memory is evoked as a possible mechanism to explain the engagement of the default mode network in probability learning. A BOLD response relating to value was detected only at decision time, mainly in striatum. It is concluded that activity in inferior parietal and medial prefrontal cortex reflects the amount of evidence accumulated in favor of competing and uncertain outcomes

Gender differences in two decision-making tasks in a community sample of adolescents

In adolescence, externalized problems such as risk taking and antisocial behavior are more frequent in boys. This suggests that there are differences in the way boys and girls evaluate risk and make decisions during this period. To explore decision making and highlight possible gender differences, 124 adolescents at a junior secondary school completed two decision-making tasks: The Iowa Gambling Task (Bechara, Damasio, Damasio, & Anderson, 1994) and the Rogers Betting Task (Rogers et al., 1999). The results indicate that girls make more advantageous decisions on the Gambling Task and boys take more risks during the Betting Task. These results are discussed in light of the differing development of emotion, cognition, and brain structures in boys and girls. © 2006 The International Society for the Study of Behavioural Development

How is impulsivity related to depression in adolescence? Evidence from a French validation of the cognitive emotion regulation questionnaire

The aim of this study was to validate a French version of the Cognitive Emotion Regulation Questionnaire (CERQ; Garnefski, N., Kraaij, V., & Spinhoven, P., 2001. Negative life events, cognitive emotion regulation and emotional problems. Personality and Individual Differences, 30, 1311-1327) and to explore its relationships with impulsivity and depression. Teenagers from a junior secondary (n = 107, 13-16 years) and a secondary school (n = 110, 15-19 years) completed the CERQ, which assesses regulation strategies in response to negative events. The secondary school adolescents also completed the UPPS Impulsive Behavior Scale (Whiteside, S. P., & Lynam, D. R., 2001. The five factor model and impulsivity: Using a structural model of personality to understand impulsivity. Personality and Individual Differences, 30, 669-689) and the Reynolds Adolescent Depression Scale (Reynolds, W. M., 1987. Reynolds Adolescent Depression Scale: Professional manual. Odessa, FL: Psychological Assessment Resources). Factor analysis for the CERQ confirmed the presence of the nine original regulation strategies. In the secondary school students, impulsivity was related to depression. A path analysis revealed that regulation strategies mediated this relationship. The role of emotion regulation in the development of adolescent psychopathology is discussed. © 2006 The Association for Professionals in Services for Adolescents

Memory for angry faces, impulsivity, and problematic behavior in adolescence

Research has shown that cognitive processes like the attribution of hostile intention or angry emotion to others contribute to the development and maintenance of conduct problems. However, the role of memory has been understudied in comparison with attribution biases. The aim of this study was thus to test if a memory bias for angry faces was related to conduct problems in youth. Adolescents from a junior secondary school were presented with angry and happy faces and were later asked to recognize the same faces with a neutral expression. They also completed an impulsivity questionnaire. A teacher assessed their behavior. The results showed that a better recognition of angry faces than happy faces predicted conduct problems and hyperactivity/inattention as reported by the teacher. The memory bias effect was more pronounced for impulsive adolescents. It is suggested that a memory bias for angry faces favors disruptive behavior but that a good ability to control impulses may moderate the negative impact of this bias. © 2007 Springer Science+Business Media, LLC