Psychology

As human life expectancy continues to rise, financial decisions of aging investors may have an increasing impact on the global economy. In this study, we examined age differences in financial decisions across the adult life span by combining functional neuroimaging with a dynamic financial investment task. During the task, older adults made more suboptimal choices than younger adults when choosing risky assets. This age-related effect was mediated by a neural measure of temporal variability in nucleus accumbens activity. These findings reveal a novel neural mechanism by which aging may disrupt rational financial choice.

With the recent growth of functional magnetic resonance imaging (fMRI), scientists across a range of disciplines are comparing neural activity between groups of interest, such as healthy controls and clinical patients, children and young adults and younger and older adults. In this edition of Tools of the Trade, we will discuss why great caution must be taken when making group comparisons in studies using fMRI. Although many methodological contributions have been made in recent years, the sugges- tions for overcoming common issues are too often overlooked. This review focuses primarily on neuroimaging studies of healthy aging, but many of the issues raised apply to other group designs as well.

Although global declines in structure have been documented in the aging human brain, little is known about the functional integrity of the striatum and prefrontal cortex in older adults during incentive processing. We used event-related functional magnetic resonance imaging to determine whether younger and older adults differed in both self-reported and neural responsiveness to anticipated monetary gains and losses. The present study provides evidence for intact striatal and insular activation during gain anticipation with age, but shows a relative reduction in activation during loss anticipation. These findings suggest that there is an asymmetry in the processing of gains and losses in older adults that may have implications for decision-making.

Background Everyday life demands continuous flexibility in thought and behavior. We examined whether individual differences in dopamine function are related to variability in the effects of amphetamine on one aspect of flexibility: task switching. Methods Forty healthy human participants performed a task-switching paradigm following placebo and oral amphetamine administration.[18 F] fallypride was used to measure D2/D3 baseline receptor availability and amphetamine-stimulated dopamine release.

ABSTRACT As the proportion of older adults continues to grow rapidly here in the US and across the globe, aging adults may be required to make increasingly more independent health-related and financial decisions. Thus, it is increasingly imperative to better understand the impact of age-related psychological changes on decision making.

Emerging findings imply that distinct neurobehavioral systems process gains and losses. This study investigated whether individual differences in gain learning and loss learning might contribute to different life financial outcomes (ie, assets versus debt). In a community sample of healthy adults (n= 75), rapid learners had smaller debt-to-asset ratios overall. More specific analyses, however, revealed that those who learned rapidly about gains had more assets, while those who learned rapidly about losses had less debt.

Abstract The anterior insula has been implicated in both the experience and the anticipation of negative outcomes. Although individual differences in insular sensitivity have been associated with self-report measures of chronic anxiety, previous research has not examined whether individual differences in insular sensitivity predict learning to avoid aversive stimuli.

Abstract Life financial outcomes carry a significant heritable component, but the mechanisms by which genes influence financial choices remain unclear. Focusing on a polymorphism in the promoter region of the serotonin transporter gene (5-HTTLPR), we found that individuals possessing the short allele of this gene invested less in equities, were less engaged in actively making investment decisions, and had fewer credit lines.

Effective social and emotional functioning is1 essential to healthy relationships at any age. Although the understanding of socioemotional functioning in late life has increased in recent decades, most of the existing research relies on information reported by individuals on questionnaires or during interviews. Social neuroscience promises to uncover important and novel information that can greatly enhance this important area of research.

Abstract Some people find it more difficult to delay rewards than others. In three experiments, we tested a “future self-continuity” hypothesis that individual differences in the perception of one's present self as continuous with a future self would be associated with measures of saving in the laboratory and everyday life.

Abstract: In this chapter, we summarize recent findings in neuroeconomics suggesting that emotion (specifically,“anticipatory affect”) can influence financial decisions, and then discuss how individual differences in anticipatory affect may promote prone-ness to consumer debt.

How do people perceive routine events such as making a bed as they unfold in time? Research on knowledge structures suggests that people conceive of events as goal-directed partonomic hierarchies. Here, participants segmented videos of events into coarse and fine units on separate viewings; some described the activity of each unit as well. Both segmentation and descriptions support the hierarchical bias hypothesis in event perception: observers spontaneously encoded the events in terms of partonomic hierarchies. Hierarchical organization was strengthened by simultaneous description, and to a weaker extent, by familiarity. Describing from memory rather than perception yielded fewer units but did not alter the qualitative nature of the descriptions. Although the descriptions were telegraphic and without communicative intent, their hierarchical structure was evident to naive readers. The data suggest that cognitive schemata mediate between perceptual and functional information about events, and indicate that these knowledge structures may be organized around object/action units.

Events can be understood in terms of their temporal structure. Here, we draw on several bodies of research to construct an analysis of how people use event structure in perception, understanding, planning, and action. Philosophy provides a grounding for the basic units of events and actions. Perceptual psychology provides an analogy to object perception: Like objects, events belong to categories and, like objects, events have parts. These relationships generate two hierarchical organizations for events: taxonomies and partonomies. Event partonomies have been studied by looking at how people segment activity as it happens. Structured representations of events can relate partonomy to goal relationships and causal structure; such representations have been shown to drive narrative comprehension, memory and planning. Computational models provide insight into how mental representations might be organized and transformed. These different approaches to event structure converge on an explanation of how multiple sources of information interact in event perception and conception.

Graphics have been used since ancient times to portray things that are inherently spatiovisual, like maps and building plans. More recently, graphics have been used to portray things that are metaphorically spatiovisual, like graphs and organizational charts. The assumption is that graphics can facilitate comprehension, learning, memory, communication and inference. Assumptions aside, research on static graphics has shown that only carefully designed and appropriate graphics prove to be beneficial for conveying complex systems. Effective graphics conform to the Congruence Principle according to which the content and format of the graphic should correspond to the content and format of the concepts to be conveyed. From this, it follows that animated graphics should be effective in portraying change over time. Yet the research on the efficacy of animated over static graphics is not encouraging. In cases where animated graphics seem superior to static ones, scrutiny reveals lack of equivalence between animated and static graphics in content or procedures; the animated graphics convey more information or involve interactivity. Animations of events may be ineffective because animations violate the second principle of good graphics, the Apprehension Principle, according to which graphics should be accurately perceived and appropriately conceived. Animations are often too complex or too fast to be accurately perceived. Moreover, many continuous events are conceived of as sequences of discrete steps. Judicious use of interactivity may overcome both these disadvantages. Animations may be more effective than comparable static graphics in situations other than conveying complex systems, for example, for real time reorientations in time and space. #

Subjects read narratives describing directions of objects around a standing or reclimng observer, who was periodically reoriented. RTs were measured to identify which object was currently located beyond the observer's head, feet, front, back, fight, and left. When the observer was standing, head/feet RTs were fastest, followed by front/back and then right/left. For the reclining observer, front/back RTs were fastest, followed by head/feet and then right/left. The data support the spatial framework model, according to which space is conceptualized in terms of three axes whose accessibility depends on body asymmetries and the relation of the body to the world. The data allow rejection of the equiavailability model, according to which RTs to all directions are equal, and the mental transformation model, according to which RTs increase with angular disparity from front.

Events can be understood in terms of their temporal structure. Here, we draw on several bodies of research to construct an analysis of how people use event structure in perception, understanding, planning, and action. Philosophy provides a grounding for the basic units of events and actions. Perceptual psychology provides an analogy to object perception: Like objects, events belong to categories and, like objects, events have parts. These relationships generate two hierarchical organizations for events: taxonomies and partonomies. Event partonomies have been studied by looking at how people segment activity as it happens. Structured representations of events can relate partonomy to goal relationships and causal structure; such representations have been shown to drive narrative comprehension, memory and planning. Computational models provide insight into how mental representations might be organized and transformed. These different approaches to event structure converge on an explanation of how multiple sources of information interact in event perception and conception.

Although cognitive map is a popular metaphor for people's mental representations of environments, as it is typically conceived, it is often too restrictive. Two other metaphors for mental representations are proposed and supported. Cognitive collages are consistent with research demonstrating systematic errors in memory and judgment of environmental knowledge. Yet, for some simple or well-known environments, people seem to have coherent representations of the coarse spatial relations among elements. These spatial mental models allow inference and perspective-taking but may not allow accurate metric judgments.