Wednesday, 23 November 2011

Week 5 Reflective report - Decision under risk and uncertainty

The Neuroscience of Valuation 

Research has shown that the brain can represent losses compared to gains. Research within the neuroscience of valuation literature studies on primates has found that neurons play a crucial role in valuation of rewards (dopamine neurone).

MRI scans have found this link to be true. Generally research has found that despite odds remaining the same but wagers changing, individuals would take less risk as the stakes became greater; as this happens the MRI scan revealed that individuals brain reward centre quickly deactivated.  This led researchers to believe that as humans we are not just behaviourally sensitive to loss and gain but also our brains are just as sensitive.

http://www.youtube.com/watch?v=21BnFTLTeXc&feature=related



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