Risk Aversion in The Brain
Attitudes towards risk have attracted the interest of the field of neuroeconomics and behavioral economics. A study by researchers at the University of Cambridge suggested that the activity of a specific brain area (right inferior frontal gyrus) correlates with risk aversion, with more risk averse participants (i.e. those having higher risk premia) also having higher responses to safer options. This result coincides with other studies, that show that neuromodulation of the same area results in participants making more or less risk averse choices, depending on whether the modulation increases or decreases the activity of the target area.
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Famous quotes containing the words risk, aversion and/or brain:
“I’m a very smart guy. I haven’t a feeling or a scruple in the world. All I have the itch for is money. I am so money greedy that for twenty-five bucks a day and expenses, mostly gasoline and whisky, I do my thinking myself, what there is of it; I risk my whole future, the hatred of the cops ... I dodge bullets and eat saps, and say thank you very much, if you have any more trouble, I hope you’ll think of me, I’ll just leave one of my cards in case anything comes up.”
—Raymond Chandler (1888–1959)
“My aversion from music rests on political grounds.”
—Thomas Mann (1875–1955)
“You are as still as a yardstick. You have a doll’s kiss.
The brain whirls in a fit. The brain is not evident.
I have gone to that same place without a germ or a stroke.
A little solo act that lady with the brain that broke.”
—Anne Sexton (1928–1974)