TB4 Lecture 4; Decision making and the brain

The main objectives in this lecture are;

  • Expected value v.s expected utility
  • Reward and the brain
  • Temporal discounting
  • Social decision making
  • Heuristics in decision making
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  • Created by: mint75
  • Created on: 25-05-15 17:59

1. What two concepts were added to expected utility by prospect theory?

  • Reference dependence (making decisions in terms of anticipated gains/loss compared to current state), probability weighting (probability is perceived highly subjectively, underestimating the chance of high prob. events)
  • Reference dependence (probability is perceived highly subjectively, underestimating the chance of high prob. events), probability weighting (making decisions in terms of anticipated gains/loss compared to current state)
  • Over/underestimation (of high and low probability events) and loss aversion
  • Loss aversion and diminishing marginal effect
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Other questions in this quiz

2. What is the decoy effect?

  • Presentation of another option that is inferior in all respects has shown to influence preference
  • Preference for current state of affairs

3. What did a study by Matsumoto & Hikosake (2009) find?

  • A subset of DP neurons in the midbrain responded to negative but not positive events.
  • DP neurons will always fire with a pleasing stimulus
  • A subset of DP neurons in the midbrain responded to both positive and negative events.
  • A subset of DP neurons in the midbrain responded to positive but not negative events.

4. What is expected utility?

  • The psychological as opposed to economic value assigned to an outcome (e.g happiness with getting 50,000 or 100,000)
  • The probability of the outcome x associated reward (e.g 100% chance of getting 50 - 1/1 x 50 = £50)

5. What did Sanfey (2003) find in their ultimatum game study?

  • Unfairness decreased striatal activation
  • Unfairness generated activation in the anterior insula
  • Unfairness increased striatal activation
  • Unfairness decreased activation in the anterior insula

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