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This study reveals how the brain processes risk versus ambiguity in decision-making. Individual attitudes toward uncertainty significantly influence neural signals, differentiating the processing of subjective value under risk and ambiguity.

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Area of Science:

  • Neuroscience
  • Cognitive Psychology
  • Decision Science

Background:

  • Decision-making often occurs under uncertainty, categorized as risk (known probabilities) or ambiguity (unknown probabilities).
  • Neural mechanisms differentiating risk and ambiguity processing in value-based decisions remain incompletely understood.

Purpose of the Study:

  • To disentangle neural signals of risk and ambiguity in value-based decision-making.
  • To investigate the influence of individual attitudes and subjective value (SV) on these neural signals.

Main Methods:

  • Electroencephalography (EEG) recorded during a wheel-of-fortune task.
  • Assessment of individual attitudes toward risk and ambiguity via a lottery task.
  • Calculation of trial-level subjective value (SV) based on participant attitudes.

Main Results:

  • Risk correlated with a larger cue-P3, while ambiguity showed a larger cue-N2 and stronger valence effects on reward positivity and feedback-P3.
  • Subjective value (SV) was encoded by all ERP components under risk, but not under ambiguity.
  • Individual attitudes modulated ERP responses, with less risk-averse attitudes linked to reduced valence/probability effects and less ambiguity-averse attitudes to increased ambiguity-level effects.

Conclusions:

  • Neural processing of risk and ambiguity is distinct, particularly in how subjective value is represented.
  • Individual attitudes play a critical role in shaping neural responses to uncertainty.
  • Findings support the importance of considering individual differences when studying neural signals of decision-making under uncertainty.