Event-related brain potentials reflect predictive coding of anticipated economic change.

ABSTRACT: Research has demonstrated the importance of economic forecasts for financial decisions at the aggregate economic level. However, little is known about the psychological and neurophysiological mechanisms that economic forecasts activate at the level of individual decision-making. In the present study, we used event-related brain potentials (ERPs) to test the hypothesis that economic forecasts influence individuals' internal model of the economy and their subsequent decision behavior. Using a simple economic decision-making game, the Balloon Analogue of Risk Task (BART) and predictive messages about possible economic changes in the game before each block, we test the idea that brain potentials time-locked to decision outcomes can vary as a function of exposure to economic forecasts. Behaviou

SUBMITTER: Petropoulos Petalas D 

PROVIDER: S-EPMC7497516 | biostudies-literature | 2020 Oct

REPOSITORIES: biostudies-literature