Combinations of low-level and high-level neural processes account for distinct patterns of context-dependent choice

Context effects have been explained by either low-level neural adjustments or high-level cognitive processes but not their combination. It is currently unclear how these processes interact to shape individuals’ responses to context. Here, we used a large cohort of human subjects in experiments involving choice between two or three gambles in order to study the dependence of context effects on neural adaptation and individuals’ risk attitudes. Our experiments did not provide any evidence that neural adaptation on long timescales (~100 trials) contributes to context effects. Using post-hoc analyses we identified two groups of subjects with distinct patterns of responses to decoys, both of which depended on individuals’ risk aversion. Subjects in the first group exhibited strong, consistent decoy effects and became more risk averse due to decoy presentation. In contrast, subjects in the second group did not show consistent decoy effects and became more risk seeking. The degree of change in risk aversion due to decoy presentation was positively correlated with the original degrees of risk aversion. To explain these results and reveal underlying neural mechanisms, we developed new models incorporating both low- and high-level processes and used these models to fit individuals’ choice behavior. We found that observed distinct patterns of decoy effects can be explained by a combination of adjustments in neural representations and competitive weighting of reward attributes, both of which depend on risk aversion but in opposite directions. Altogether, our results demonstrate how a combination of low- and high-level processes shapes choice behavior in more naturalistic settings, modulates overall risk preference, and explains distinct behavioral phenotypes.Author summary: A large body of experimental work has illustrated that the introduction of a new, and often irrelevant, option can influence preference among the existing options, a phenomenon referred to as context or decoy effects. For example, introducing a new option that is worse than one of the two existing options in all its attributes but better than the alternative option in some attributes (and thus should not ever be selected) can increase the preference for the former option. Context effects have been explained by high-level cognitive processes—such as comparisons and competitions between attributes—or low-level adjustments of neural representations. However, it is unclear how these processes interact to shape individuals’ responses to context. Here, we show that both high-level cognitive processes and low-level neural adjustments shift risk preference during choice between multiple risky options but in opposite directions. Moreover, we demonstrate that combinations of these processes can account for distinct patterns of context effects in human subjects.