William Hedgcock

Trade-off aversion as an explanation for the attraction effect: A functional magnetic resonance imaging study

This research reports on a cognitive neuroscientific examination of whether trade-off aversion explains the attraction effect. The principal study involves the neuroimaging of participants engaging in choice tasks while their cerebral activity is recorded. The authors examine whether the presence of a third (normatively irrelevant) alternative yields relatively less activation in areas of the brain associated with negative emotion than the activation during choice tasks involving two equally (un)attractive options. The results support the claim that trade-off choice sets are associated with relatively greater negative emotion. The authors discuss the implications of the research for marketing theory and methodology, as well as for managerial practice in the corporate and public policy arenas.

Could Ralph Nader's Entrance and Exit Have Helped Al Gore? The Impact of Decoy Dynamics on Consumer Choice

People are frequently faced with making a new choice decision after a preferred option becomes unavailable. Prior research on the attraction effect has demonstrated how the introduction of an option into a choice set increases the share of one of the original options. The authors examine the related but previously unaddressed issue of whether the unexpected exit of an option from a choice set returns the choice shares of the original options to the status quo. In a series of experiments, they observe that when an option turns out to be unselectable following a choice problem in which it was selectable, the choice shares of the remaining options are predictably different from those of a choice problem in which the option was unselectable from the start. They also observe that this attraction effect due to the disappearance of a decoy is likely a consequence of changes in the importance of decision criteria. They conclude with a discussion of the theoretical and managerial implications of the research.

Individual differences in the neural signature of subjective value among older adults

Some healthy older adults show departures from standard decision-making patterns exhibited by younger adults. We asked if such departures are uniform or if heterogeneous aging processes can designate which older adults show differing decision patterns. Thirty-three healthy older adults with varying decision-making patterns on a complex decision task (the Iowa Gambling Task) completed an intertemporal choice task while undergoing functional magnetic resonance imaging. We examined whether value representation in the canonical valuation network differed across older adults based on complex decision-making ability. Older adults with advantageous decision patterns showed increased activity in the valuation network, including the ventromedial prefrontal cortex (VMPFC) and striatum. In contrast, older adults with disadvantageous decision patterns showed reduced or absent activation in the VMPFC and striatum, and these older adults also showed greater blood oxygen level dependent signal temporal variability in the striatum. Our results suggest that a reduced representation of value in the brain, possibly driven by increased neural noise, relates to suboptimal decision-making in a subset of older adults, which could translate to poor decision-making in many aspects of life, including finance, health and long-term care. Understanding the connection between suboptimal decision-making and neural value signals is a step toward mitigating age-related decision-making impairments.

Functional neuroimaging of the Iowa Gambling Task in older adults.

OBJECTIVE The neural systems most susceptible to age-related decline mirror the systems linked to decision making. Yet, the neural processes underlying decision-making disparities among older adults are not well understood. We sought to identify neural response patterns that distinguish 2 groups of older adults who exhibit divergent decision-making patterns. METHOD Participants were 31 healthy older adults (ages 59-88, 53% female), defined as advantageous or disadvantageous decision-makers based on Iowa Gambling Task (IGT) performance, who completed an alternate version of the IGT while undergoing functional MRI. The groups were indistinguishable on neuropsychological testing. We contrasted the BOLD signal between groups during 3 phases of the decision-making process: Prechoice (preselection), Prefeedback (postselection), and Feedback (receipt of gains/losses). We further examined whether BOLD signal varied as a function of age in each group. RESULTS We observed greater activation among the IGT-Disadvantageous relative to -Advantageous older adults in the prefrontal cortex during the early phases of the decision-making process (Prechoice), and in posterior brain regions (e.g., the precuneus) during the later phases (Prefeedback and Feedback). We also found that with increasing age, IGT-Advantageous older adults showed increasing activation in the prefrontal cortex during all phases and increasing activation in the posterior cingulate during earlier phases of the decision process. By contrast, the IGT-Disadvantageous older adults exhibited a reduced or reversed trend. CONCLUSIONS These functional differences may be a consequence of altered reward processing or differing compensatory strategies between IGT-Disadvantageous and -Advantageous older adults. This supports the notion that divergent neurobiological aging trajectories underlie disparate decision-making patterns.

Chapter 5 – Age-Associated Executive Dysfunction, the Prefrontal Cortex, and Complex Decision Making

The chapter begins with a review of several guiding observations, theoretical frameworks, and empirical tests important to the neuroscientific study of decision making. Next, behavioral, psychophysiological, and neuroimaging studies are presented to support the contention that some seemingly normal older persons have deficits in reasoning and decision making secondary to dysfunction in a neural system that includes the ventromedial prefrontal cortices. We propose that this brain region is critical for bringing emotion-related signals to bear on decision making. Dysfunction in this neural system has real-world implications, such as making older adults vulnerable to victimization by fraudulent sales tactics. We conclude by discussing the need for a formal term for age-associated changes in decision making, and propose age-associated executive dysfunction to designate older adults who demonstrate disproportionate decline in executive functions referable to the prefrontal cortex. Having such a term would help to facilitate research and funding, identify at-risk individuals, and influence public policy.

The Role of the Ventromedial Prefrontal Cortex in Purchase Intent Among Older Adults

Older adults are frequently the targets of scams and deception, with millions of individuals being affected each year in the United States alone. Previous research has shown that the ventromedial prefrontal cortex (vmPFC) may play a role in vulnerability to fraud. The current study examined brain activation patterns in relation to susceptibility to scams and fraud using functional magnetic resonance imaging (fMRI). Twenty-eight healthy, community-dwelling older adults were subdivided into groups of impaired and unimpaired decision makers as determined by their performance on the Iowa Gambling Task (IGT). While in the scanner, the participants viewed advertisements that were created directly from cases deemed deceptive by the Federal Trade Commission (FTC). We then obtained behavioral measures involving comprehension of claims and purchase intention of the product in each advertisement. Contrasts show brain activity in the vmPFC was less correlated with purchase intention in impaired vs. unimpaired older adult decision makers. Our results have important implications for both future research and recognizing the possible causes of fraud susceptibility among older adults.

Relative Effects of Forward and Backward Planning on Goal Pursuit

Considerable research has shown that planning plays an important role in goal pursuit. But how does the way people plan affect goal pursuit? Research on this question is scarce. In the current research, we examined how planning the steps required for goal attainment in chronological order (i.e., forward planning) and reverse chronological order (i.e., backward planning) influences individuals’ motivation for and perceptions of goal pursuit. Compared with forward planning, backward planning not only led to greater motivation, higher goal expectancy, and less time pressure but also resulted in better goal-relevant performance. We further demonstrated that this motivational effect occurred because backward planning allowed people to think of tasks required to reach their goals more clearly, especially when goals were complex to plan. These findings suggest that the way people plan matters just as much as whether or not they plan.