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Updated: Jun 24, 2026
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Measuring the Subjective Value of Risky and Ambiguous Options using Experimental Economics and Functional MRI Methods
Published on: September 19, 2012
Risk-dependent reward value signal in human prefrontal cortex.
Philippe N Tobler1, George I Christopoulos, John P O'Doherty
1Department of Physiology, Development and Neuroscience, University of Cambridge, Downing Street, Cambridge CB2 3DY, United Kingdom. pnt21@cam.ac.uk
Summary
People weigh expected value and risk when making decisions. Brain imaging reveals the prefrontal cortex integrates these factors, showing distinct patterns for risk-seeking versus risk-averse individuals.
Area of Science:
- Neuroscience
- Decision Science
- Cognitive Psychology
Background:
- Decision-making under uncertainty involves evaluating both expected value and risk.
- Individual differences in risk tolerance (risk-seeking vs. risk-averse) influence utility calculations.
- Understanding the neural basis of how risk and value are integrated is crucial for decision neuroscience.
Purpose of the Study:
- To investigate how the human brain integrates predicted risk and expected value into a common reward signal.
- To examine the neural responses in the prefrontal cortex and striatum during decision-making involving risk and value.
- To compare neural processing in choice versus no-choice situations.
Main Methods:
- Utilized functional magnetic resonance imaging (fMRI) to measure blood oxygen level dependent (BOLD) responses.
- Designed two experiments: one with imperative (no-choice) and one with choice situations.
- Analyzed neural activity in the lateral prefrontal cortex and striatum in relation to reward value and risk.
Main Results:
- Lateral prefrontal cortex activity increased with reward value, modulated by risk preference.
- Risk enhanced prefrontal cortex responses in risk-seeking individuals but reduced them in risk-averse individuals.
- The striatum showed value signals independent of risk, contrasting with the aggregate signal in the prefrontal cortex.
Conclusions:
- The prefrontal cortex exhibits an aggregate signal for risk and value, consistent with the mean-variance approach to utility.
- Neural integration of risk and value in the prefrontal cortex differs from pure value processing in the striatum.
- These findings provide insights into the neural mechanisms underlying risky decision-making.
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