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Updated: Jun 5, 2026

Measuring the Subjective Value of Risky and Ambiguous Options using Experimental Economics and Functional MRI Methods
Published on: September 19, 2012
Hypothetical and real choice differentially activate common valuation areas.
Min Jeong Kang1, Antonio Rangel, Mickael Camus
1Haas School of Business, University of California, Berkeley, California 94720, USA.
Decision neuroscience reveals that real and hypothetical choices engage similar brain regions, including the orbitofrontal cortex and ventral striatum. However, these areas show stronger activity during real purchasing decisions.
Area of Science:
- Decision Neuroscience
- Neuroeconomics
- Cognitive Neuroscience
Background:
- Hypothetical choices are frequently used to infer real-world decision-making.
- A key question is whether hypothetical and real decisions utilize identical valuation and choice computations.
Purpose of the Study:
- To investigate if the brain employs the same valuation and choice computations for both real and hypothetical decisions.
- To identify neural correlates underlying differences between real and hypothetical choice behavior.
Main Methods:
- Functional magnetic resonance imaging (fMRI) was used to monitor brain activity in human subjects.
- Subjects made both real and hypothetical purchasing decisions for consumer goods.
- Brain activity was correlated with behavioral measures of stimulus value for each decision type.
Main Results:
- Activity in the orbitofrontal cortex and ventral striatum correlated with stimulus value in both real and hypothetical decisions.
- These brain regions exhibited significantly stronger activity in response to stimulus value during real choices compared to hypothetical ones.
- The findings indicate that differences in value computation within these regions, not distinct valuation systems, differentiate real from hypothetical choices.
Conclusions:
- The medial orbitofrontal cortex and ventral striatum play a crucial role in modulating value computations between real and hypothetical decisions.
- The underlying valuation systems appear consistent across both decision types.
- The observed differences in neural activity primarily stem from variations in the magnitude of value computation, particularly in the medial orbitofrontal cortex and ventral striatum.
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