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Decision Making

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Related Experiment Video

Updated: Jul 6, 2026

Measuring the Subjective Value of Risky and Ambiguous Options using Experimental Economics and Functional MRI Methods

Measuring the Subjective Value of Risky and Ambiguous Options using Experimental Economics and Functional MRI Methods

Published on: September 19, 2012

Mentalizing in economic decision-making.

David Polezzi¹, Irene Daum, Enrico Rubaltelli

¹Department of Developmental Psychology and Socialization, University of Padova, via Venezia 8, 35131 Padova, Italy. david.polezzi@unipd.it

Behavioural Brain Research

|April 15, 2008

Summary

This summary is machine-generated.

People reject unfair monetary offers in the Ultimatum Game, even at a cost. This study used electroencephalography (EEG) to show that unfairness triggers rapid neural responses and complex decision-making for ambiguous offers.

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Area of Science:

Neuroscience
Behavioral Economics
Cognitive Psychology

Background:

The Ultimatum Game demonstrates that fairness considerations influence economic decisions, often overriding purely rational self-interest.
Participants frequently reject unfair offers, even when it results in no gain, highlighting the role of non-economic factors.

Purpose of the Study:

To investigate the neural mechanisms underlying decision-making in the Ultimatum Game, particularly for ambiguous offers.
To differentiate brain responses to fair, unfair, and mid-value offers using electroencephalography (EEG).

Main Methods:

Electroencephalography (EEG) was employed to record event-related potentials (ERPs) while participants processed various monetary offers.
Analysis focused on the feedback-related negativity (FRN) and N350 components, alongside reaction times (RTs).
Source localization techniques were used to identify brain regions involved in processing different offer types.

Main Results:

A rapid neural distinction between fair and unfair offers was observed via the feedback-related negativity (FRN) amplitude.
Mid-value offers, requiring more complex decision-making, elicited longer reaction times (RTs) and a larger N350 amplitude.
Superior temporal gyrus and inferior parietal lobule showed increased activity when processing mid-value offers, suggesting mentalizing about proposer intentions.

Conclusions:

Economic decisions are significantly influenced by non-rational factors, such as fairness and social considerations.
Neural processes related to fairness perception and intention attribution play a crucial role in economic decision-making, bridging the gap between theory and behavior.