Researchers have identified a critical neural region in rats, known as the frontal orienting field (FOF), which is instrumental in making decisions under conditions of uncertainty. When this region was rendered inactive, the rats exhibited a tendency towards more conservative economic decisions.
A recent investigation highlights the role of the frontal and parietal cortex in decision-making involving economic risks in rats.
For the first time, neuroscientists have empirically established the causal influence of the frontal and parietal cortex in the economic decision-making process in rats. These findings serve as a foundation for exploring the neural underpinnings of decision-making in risky scenarios.
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The Gravity of Economic Choices
“In today’s economic landscape where financial choices carry significant implications, the decisions we make are often shrouded in uncertainty. The current increase in the cost of living, for instance, poses dilemmas for savers who must decide whether to invest in volatile markets to counteract the erosion of their savings by inflation. Our aim was to create a rodent model that mirrors the types of financial decisions humans must make, in order to understand the neural mechanisms driving decision-making under uncertain conditions,” stated Jeffrey Erlich, Group Leader at the Sainsbury Wellcome Centre and the paper’s lead author.
Specifics of the Experiment
The study was conducted by scientists from the Sainsbury Wellcome Centre at UCL and NYU Shanghai. In the experiment, rats were given two options: a ‘safe bet’ with a small but certain reward, or a lottery with a predetermined likelihood. Different auditory cues were used to signal the size of the potential lottery rewards.
“Six different auditory cues corresponded to varying lottery rewards. The least appealing offer was zero, meaning the rats should never opt for the lottery in that case. This served as our baseline for understanding offer-independent biases, helping us accurately assess the rats’ inherent risk tolerance,” elaborated Erlich.
Influence of Neural Regions on Decision-Making
To scrutinize the specific role of the frontal and parietal cortex in deciding whether to engage in the lottery, the research team temporarily deactivated two targeted brain areas: the frontal orienting field (FOF) and the posterior parietal cortex (PPC). Both pharmacological and optogenetic methods were employed to verify the findings.
Upon silencing the FOF, the rats became less inclined to take risks, whereas the inhibition of the PPC had a minor, fleeting impact. Utilizing a Bayesian hierarchical model, the researchers determined that the FOF influenced risk tolerance rather than decision-making bias. Specifically, rats remained willing to engage in the lottery for exceedingly high potential rewards but were less inclined to do so when the lottery’s potential reward was moderate.
Interpretations from the Research
To elucidate this behavior, a dynamic model of FOF silencing was developed. The model indicates that the FOF is tasked with assessing the lottery’s value and juxtaposing it with the unchanging value of the safe bet. When FOF is silenced, the dynamic valuation of the lottery diminishes, leading to a shift in the rats’ preferences towards the safe bet.
The study found this shift to be most prominent when the lottery’s expected value was marginally higher than the safe bet. This demonstrates that even after the FOF’s inhibitory influence, lotteries with considerably higher potential values still remained attractive to the rats.
“In our behavioral observations, FOF silencing led to a change in risk aversion. This can be explained by the FOF’s role in evaluating the worth of the lottery in comparison to the safe bet. Our simulations substantiated this theory, and neuronal recordings from the FOF confirmed that it indeed encodes the value of the lottery,” Erlich explained.
Future Research Directions
The research team intends to probe the neural pathways connected to the FOF to gain a comprehensive understanding of the neural circuitry involved. Furthermore, they are in the process of designing an updated version of the experimental task that will incorporate additional cues, facilitating a deeper understanding of how choices translate into actions.
Acknowledgments
This research received financial support from the 111 project (Base B16018), the National Natural Science Foundation of China (NSFC), the NYU-ECNU Institute of Brain and Cognitive Science at NYU Shanghai, and the Sainsbury Wellcome Centre’s funding bodies: the Gatsby Charitable Foundation and Wellcome.
Reference: “The rat frontal orienting field dynamically encodes value for economic decisions under risk” by Chaofei Bao, Xiaoyue Zhu, Joshua Mōller-Mara, Jingjie Li, Sylvain Dubroqua and Jeffrey C. Erlich, published on 19 October 2023 in Nature Neuroscience. DOI: 10.1038/s41593-023-01461-x
Frequently Asked Questions (FAQs) about neural mechanisms in economic decisions
What is the primary objective of this research?
The primary objective of the research is to understand the neural mechanisms that influence economic decision-making under conditions of uncertainty. The study focuses on specific regions in rat brains, mainly the frontal orienting field (FOF), to explore how they affect choices involving risk.
Who conducted this research?
The research was conducted by a team of scientists from the Sainsbury Wellcome Centre at UCL and NYU Shanghai. Jeffrey Erlich, the Group Leader at the Sainsbury Wellcome Centre, is the corresponding author on the paper.
What experimental methods were used in the study?
The researchers used both pharmacological and optogenetic silencing methods to temporarily deactivate targeted brain regions in rats, specifically the frontal orienting field (FOF) and the posterior parietal cortex (PPC). Additionally, Bayesian hierarchical models were employed to analyze the data.
What did the researchers discover?
The study found that the frontal orienting field (FOF) plays a significant role in risk tolerance during economic decision-making. When this area was silenced, rats exhibited a shift towards more conservative economic choices. The posterior parietal cortex (PPC) had a smaller, short-lived effect on decision-making.
How does this research contribute to our understanding of economic decision-making?
The findings provide foundational insights into the neurobiology of risky financial choices. By identifying the role of specific brain regions in economic decision-making under uncertain conditions, the research lays the groundwork for further studies that could eventually have implications for human behavior and economic theory.
What are the future directions for this research?
The research team plans to explore the neural pathways connected to the FOF to gain a more comprehensive understanding of the neural circuitry involved. They are also developing a new version of the experimental task that will incorporate additional cues to better understand how choices translate into actions.
Who funded this research?
The research received financial support from several sources including the 111 project (Base B16018), the National Natural Science Foundation of China (NSFC), the NYU-ECNU Institute of Brain and Cognitive Science at NYU Shanghai, and the Sainsbury Wellcome Centre’s funding bodies: the Gatsby Charitable Foundation and Wellcome.
More about neural mechanisms in economic decisions
- Original Research Paper in Nature Neuroscience
- Sainsbury Wellcome Centre Research Overview
- NYU Shanghai Research in Brain and Cognitive Sciences
- National Natural Science Foundation of China
- Gatsby Charitable Foundation
- Wellcome Trust
6 comments
Wow, this is some cutting-edge stuff. Who knew rats could teach us so much bout economics. Future’s lookin bright for neuroscience, eh?
Great read, but man, that’s a lotta jargon. Had to read twice to get the gist of it. Still, really cool findings!
This is mind-blowing research. But I wonder, how close are rats’ decision-making to ours. Makes you think.
If we figure out risk tolerance in rats, does that mean we can predict the stock market? haha, just kidding. Or am I?
They used optogenetics? That’s advanced tech right there. Also, Bayesian models in neuroscience? Count me in!
So the brain has specific areas that control risk-taking? Intriguing. Next, they should test this on Wall Street bankers and see what happens. lol