Beyond lottery-evoked ambiguity aversion: The neural signature of the types and the sources of uncertainty.

Studies on decision-making under uncertainty have mainly focused on understanding preferences for either risk or ambiguity using standard lottery designs. However, people often face uncertainty that directly stems from interacting with other people, which may be processed differently from lottery-based uncertainty. Here, we substantially extend the investigation of uncertainty by examining a fourfold pattern of the sources and the types of uncertainty, assessing behavioral and neural responses to both risk and ambiguity across both social and non-social contexts.

Subjective Beliefs About Trust and Reciprocity Activate an Expected Reward Signal in the Ventral Striatum.

There is overwhelming evidence that the evaluation of both reward decisions and their associated outcomes are closely linked with bilateral activation of the ventral striatum, with these insights stemming from tasks such as the monetary incentive delay task for lotteries and multiround Trust Games for social settings. The essential element in these tasks is an externally provided cue associated with specific gains/trustworthy partners and losses/non-trustworthy partners. However, in reality people typically use their own beliefs to guide their decision-making and assess the likelihood of positive or and negative outcomes.

Economic principles in communication: an experimental study.

This paper experimentally investigates how economic principles affect communication. In a simple sender-receiver game with common interests over payoffs, the sender can send a signal without a pre-given meaning in an infrequent or frequent state of the world. When the signal is costly, several theories (focal point theory, the intuitive criterion, evolutionary game theory) predict an efficient separating equilibrium, where the signal is sent in the infrequent state of the world (also referred to as Horn׳s rule).