Risk Aversion in The Brain
Attitudes towards risk have attracted the interest of the field of neuroeconomics and behavioral economics. A study by researchers at the University of Cambridge suggested that the activity of a specific brain area (right inferior frontal gyrus) correlates with risk aversion, with more risk averse participants (i.e. those having higher risk premia) also having higher responses to safer options. This result coincides with other studies, that show that neuromodulation of the same area results in participants making more or less risk averse choices, depending on whether the modulation increases or decreases the activity of the target area.
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Famous quotes containing the words risk, aversion and/or brain:
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