IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/8013.html
   My bibliography  Save this paper

Nucleus accumbens activation mediates the influence of reward cues on financial risk-taking

Author

Listed:
  • Knutson, Brian
  • Wimmer, G. Elliott
  • Kuhnen, Camelia
  • Winkielman, Piotr

Abstract

In functional magnetic resonance imaging (FMRI) research, nucleus accumbens (NAcc) activation spontaneously increases prior to financial risk taking. Since anticipation of diverse rewards can increase NAcc activation, even incidental reward cues may influence financial risk-taking. Using event-related FMRI, we predicted and found that anticipation of viewing rewarding stimuli (erotic pictures for 15 heterosexual males) increased financial risk taking, and that this effect was partially mediated by increases in NAcc activation. These results are consistent with the notion that incidental reward cues influence financial risk taking by altering anticipatory affect, and so identify a neuropsychological mechanism that may underlie effective emotional appeals in financial, marketing, and political domains.

Suggested Citation

  • Knutson, Brian & Wimmer, G. Elliott & Kuhnen, Camelia & Winkielman, Piotr, 2008. "Nucleus accumbens activation mediates the influence of reward cues on financial risk-taking," MPRA Paper 8013, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:8013
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/8013/1/MPRA_paper_8013.pdf
    File Function: original version
    Download Restriction: no

    References listed on IDEAS

    as
    1. Camelia Kuhnen & Brian Knutson, 2005. "The Neural Basis of Financial Risk Taking," Experimental 0509001, EconWPA.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Alessandro Bucciol & Luca Zarri, 2013. "Financial Risk Aversion and Personal Life History," Working Papers 05/2013, University of Verona, Department of Economics.
    2. Necker, Sarah & Ziegelmeyer, Michael, 2016. "Household risk taking after the financial crisis," The Quarterly Review of Economics and Finance, Elsevier, vol. 59(C), pages 141-160.
    3. Zak, Paul J., 2011. "The physiology of moral sentiments," Journal of Economic Behavior & Organization, Elsevier, vol. 77(1), pages 53-65, January.
    4. Richard Freeman, 2011. "New Roles for Unions and Collective Bargaining Post the Implosion of Wall Street Capitalism," Chapters,in: The Role of Collective Bargaining in the Global Economy, chapter 10 Edward Elgar Publishing.
    5. repec:kap:jbuset:v:144:y:2017:i:4:d:10.1007_s10551-016-3058-1 is not listed on IDEAS
    6. Bonnier, Evelina & Dreber, Anna & Hederos, Karin & Sandberg, Anna, 2018. "Undressed for Success? The Effects of Half-Naked Women on Economic Behavior," Working Paper Series 6/2018, Stockholm University, Swedish Institute for Social Research.
    7. repec:eee:jfinec:v:128:y:2018:i:3:p:403-421 is not listed on IDEAS
    8. Luigi Zingales, 2009. "The Future of Securities Regulation," Journal of Accounting Research, Wiley Blackwell, vol. 47(2), pages 391-425, May.
    9. Kaustia, Markku & Rantapuska, Elias, 2016. "Does mood affect trading behavior?," Journal of Financial Markets, Elsevier, vol. 29(C), pages 1-26.
    10. Luigi Guiso & Paola Sapienza & Luigi Zingales, 2013. "Time Varying Risk Aversion," EIEF Working Papers Series 1322, Einaudi Institute for Economics and Finance (EIEF), revised Sep 2013.
    11. Kuhnen, Camelia M. & Knutson, Brian, 2011. "The Influence of Affect on Beliefs, Preferences, and Financial Decisions," Journal of Financial and Quantitative Analysis, Cambridge University Press, vol. 46(03), pages 605-626, June.
    12. Jahedi, Salar & Deck, Cary & Ariely, Dan, 2017. "Arousal and economic decision making," Journal of Economic Behavior & Organization, Elsevier, vol. 134(C), pages 165-189.
    13. Angela A. Stanton & Isabell M. Welpe, 2010. "Risk and Ambiguity: Entrepreneurial Research from the Perspective of Economics," Chapters,in: Neuroeconomics and the Firm, chapter 2 Edward Elgar Publishing.
    14. Hytönen, Kaisa & Baltussen, Guido & van den Assem, Martijn J. & Klucharev, Vasily & Sanfey, Alan G. & Smidts, Ale, 2014. "Path dependence in risky choice: Affective and deliberative processes in brain and behavior," Journal of Economic Behavior & Organization, Elsevier, vol. 107(PB), pages 566-581.
    15. repec:eee:jfinec:v:128:y:2018:i:3:p:504-534 is not listed on IDEAS
    16. Reimann, Martin & Bechara, Antoine, 2010. "The somatic marker framework as a neurological theory of decision-making: Review, conceptual comparisons, and future neuroeconomics research," Journal of Economic Psychology, Elsevier, vol. 31(5), pages 767-776, October.
    17. Cary Frydman & Nicholas Barberis & Colin Camerer & Peter Bossaerts & Antonio Rangel, 2012. "Using Neural Data to Test a Theory of Investor Behavior: An Application to Realization Utility," NBER Working Papers 18562, National Bureau of Economic Research, Inc.
    18. repec:mea:meawpa:14279 is not listed on IDEAS
    19. Halko, Marja Liisa & Kaustia, Markku, 2012. "Are risk preferences dynamic? Within-subject variation in risk-taking as a function of background music," CFS Working Paper Series 2012/09, Center for Financial Studies (CFS).

    More about this item

    Keywords

    neuroeconomics; neurofinance; brain; financial risk taking; risk preferences; decision making; nucleus accumbens; striatum; reward cues; FMRI; brain imaging;

    JEL classification:

    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:8013. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Joachim Winter). General contact details of provider: http://edirc.repec.org/data/vfmunde.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.