Related Experiment Video
Updated: Jun 25, 2026

Measuring the Subjective Value of Risky and Ambiguous Options using Experimental Economics and Functional MRI Methods
Published on: September 19, 2012
The neural basis of loss aversion in decision-making under risk
Sabrina M Tom1, Craig R Fox, Christopher Trepel
1Department of Psychology, University of California Los Angeles (UCLA), Franz Hall, Box 951563, Los Angeles, CA 90095-1563, USA.
Abstract:
People typically exhibit greater sensitivity to losses than to equivalent gains when making decisions. We investigated neural correlates of loss aversion while individuals decided whether to accept or reject gambles that offered a 50/50 chance of gaining or losing money. A broad set of areas (including midbrain dopaminergic regions and their targets) showed increasing activity as potential gains increased. Potential losses were represented by decreasing activity in several of these same gain-sensitive areas. Finally, individual differences in behavioral loss aversion were predicted by a measure of neural loss aversion in several regions, including the ventral striatum and prefrontal cortex.
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