Investment behavior and the negative side of emotion
Abstract
Can dysfunction in neural systems subserving emotion lead, under certain circumstances, to more advantageous decisions? To answer this question, we investigated how normal participants, patients with stable focal lesions in brain regions related to emotion (target patients), and patients with stable focal lesions in brain regions unrelated to emotion (control patients) made 20 rounds of investment decisions. Target patients made more advantageous decisions and ultimately earned more money from their investments than the normal participants and control patients. When normal participants and control patients either won or lost money on an investment round, they adopted a conservative strategy and became more reluctant to invest on the subsequent round; these results suggest that they were more affected than target patients by the outcomes of decisions made in the previous rounds.
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Patients with lesions to a variety of emotion-processing regions, including amygdala and prefrontal cortex, are much more likely to take a single gamble with possible losses.
“a study showing that patients with lesions to a variety of emotion-processing regions (including amygdala and prefrontal cortex) are much more likely to take a single gamble with possible losses (32).”
From Amygdala damage eliminates monetary loss aversion (2010) · cites this paper as [32]
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Self-citation
- Authors
- Shiv, B., Loewenstein, G., Bechara, A., Damasio, H., & Damasio, A. R.
- Affiliations
- Stanford University (US)
- Carnegie Mellon University (US)
- University of Iowa (US)
- University of Iowa
- Corresponding author
- Shiv, Baba
- Venue
- Psychological Science
- Publisher
- SAGE Publications
- Published
- 2005-06
- Volume
- 16
- Issue
- 6
- Pages
- 435-439
- ISSN
- 0956-7976 (ISSN-L)
- 1467-9280
- OpenAlex
- W2134962460
- Cited by
- 485
- References
- 24
- Citations by year
- 2026: 19 · 2025: 9 · 2024: 12 · 2023: 20 · 2022: 18 · 2021: 19 · 2020: 18 · 2019: 19 · 2018: 23 · 2017: 21 · 2016: 20 · 2015: 27 · 2014: 33 · 2013: 30 · 2012: 32
- FWCI
- 14.34
- Type
- journal article
- Language
- en
- Open access
- closed
- Locations
- Psychological Science (publishedVersion)
- PubMed (publishedVersion)
- Funders
- National Institute of Neurological Disorders and Stroke (P01NS019632)
- Topics
- Social Sciences › Decision Sciences › General Decision Sciences › Decision-Making and Behavioral Economics
- Life Sciences › Neuroscience › Cognitive Neuroscience › Neural and Behavioral Psychology Studies
- Social Sciences › Economics, Econometrics and Finance › Finance › Financial Markets and Investment Strategies
- Keywords
- investment decision-making, emotions, focal brain lesions, decision-making, risk aversion, conservatism, outcome effects, emotional dysregulation, financial decision-making
- MeSH terms
- Affect, Amygdala, Cerebral Cortex, Decision Making, Female, Humans, Investments, Male, Middle Aged, Surveys and Questionnaires, Somatosensory Cortex, Logistic Models, Prefrontal Cortex
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