Partner choice and cooperation in social dilemmas can increase resource inequality.

Cooperation is more likely when individuals can choose their interaction partner. However, partner choice may be detrimental in unequal societies, in which individuals differ in available resources and productivity, and thus in their attractiveness as interaction partners. Here we experimentally examine this conjecture in a repeated public goods game. Individuals (n = 336), participating in groups of eight participants, are assigned a high or low endowment and a high or low productivity factor (the value that their cooperation generates), creating four unique participant types. On each round, individuals are either assigned a partner (assigned partner condition) or paired based on their self-indicated preference for a partner type (partner choice condition). Results show that under partner choice, individuals who were assigned a high endowment and high productivity almost exclusively interact with each other, forcing other individuals into less valuable pairs. Consequently, pre-existing resource differences between individuals increase. These findings show how partner choice in social dilemmas can amplify resource inequality.

Appraisal and coping predict health and well-being during the COVID-19 pandemic: An international approach.

COVID-19 has had a devastating impact on people worldwide. We conducted an international survey (n = 3646) examining the degree to which people's appraisals and coping activities around the pandemic predicted their health and well-being. We obtained subsamples from 12 countries-Bangladesh, Bulgaria, China, Colombia, India, Israel, the Netherlands, Norway, Peru, Portugal, Turkey and the United States. For each, we assessed appraisals and coping strategies as well as indicators of physical and mental health and well-being. Results indicated that, despite mean-level societal differences in outcomes, the pattern of appraisals and coping strategies predicting health and well-being was consistent across countries. Use of disengagement coping (particularly behavioural disengagement and self-isolation) was associated with relatively negative outcomes. In contrast, optimistic appraisals (particularly of high accommodation-focused coping potential and the ability to meet one's physical needs), use of problem-focused coping strategies (especially problem-solving) and accommodative coping strategies (especially positive reappraisal and self-encouragement) were associated with relatively positive outcomes. Our study highlights the critical importance of considering accommodative coping in stress and coping research. It also provides important information on how people have been dealing with the pandemic, the predictors of well-being under pandemic conditions and the generality of such relations.

The Effect of Centralized Financial and Social Incentives on Cooperative Behavior and Its Underlying Neural Mechanisms.

Incentives are frequently used by governments and employers to encourage cooperation. Here, we investigated the effect of centralized incentives on cooperation, firstly in a behavioral study and then replicated in a subsequent neuroimaging (fMRI) study. In both studies, participants completed a novel version of the Public Goods Game, including experimental conditions in which the administration of centralized incentives was probabilistic and incentives were either of a financial or social nature. Behavioral results showed that the prospect of potentially receiving financial and social incentives significantly increased cooperation, with financial incentives yielding the strongest effect. Neuroimaging results showed that activation in the bilateral lateral orbitofrontal cortex and precuneus increased when participants were informed that incentives would be absent versus when they were present. Furthermore, activation in the medial orbitofrontal cortex increased when participants would potentially receive a social versus a financial incentive. These results speak to the efficacy of different types of centralized incentives in increasing cooperative behavior, and they show that incentives directly impact the neural mechanisms underlying cooperation.

Brain Activity Foreshadows Stock Price Dynamics.

Successful investing is challenging since stock prices are difficult to consistently forecast. Recent neuroimaging evidence suggests, however, that activity in brain regions associated with anticipatory affect may not only predict individual choice, but also forecast aggregate behavior out-of-sample. Thus, in two experiments, we specifically tested whether anticipatory affective brain activity in healthy humans could forecast aggregate changes in stock prices. Using functional magnetic resonance imaging, we found in a first experiment (n = 34, 6 females; 140 trials/subject) that nucleus accumbens activity forecast stock price direction, whereas anterior insula (AIns) activity forecast stock price inflections. In a second preregistered replication experiment (n = 39, 7 females) that included different subjects and stocks, AIns activity still forecast stock price inflections. Importantly, AIns activity forecast stock price movement even when choice behavior and conventional stock indicators did not (e.g., previous stock price movements), and classifier analysis indicated that forecasts based on brain activity should generalize to other markets. By demonstrating that AIns activity might serve as a leading indicator of stock price inflections, these findings imply that neural activity associated with anticipatory affect may extend to forecasting aggregate choice in dynamic and competitive environments such as stock markets.SIGNIFICANCE STATEMENT Many try but fail to consistently forecast changes in stock prices. New evidence, however, suggests that anticipatory affective brain activity may not only predict individual choice, but also may forecast aggregate choice. Assuming that stock prices index collective choice, we tested whether brain activity sampled during the assessment of stock prices could forecast subsequent changes in the prices of those stocks. In two neuroimaging experiments, a combination of previous stock price movements and brain activity in a region implicated in processing uncertainty and arousal forecast next-day stock price changes-even when behavior did not. These findings challenge traditional assumptions of market efficiency by implying that neuroimaging data might reveal "hidden information" capable of foreshadowing stock price dynamics.

A scarcity mindset alters neural processing underlying consumer decision making.

Not having enough of what one needs has long been shown to have detrimental consequences for decision making. Recent work suggests that the experience of insufficient resources can create a "scarcity" mindset; increasing attention toward the scarce resource itself, but at the cost of attention for unrelated aspects. To investigate the effects of a scarcity mindset on consumer choice behavior, as well as its underlying neural mechanisms, we used an experimental manipulation to induce both a scarcity and an abundance mindset within participants and examined the effects of both mindsets on participants' willingness to pay for familiar food items while being scanned using fMRI. Results demonstrated that a scarcity mindset affects neural mechanisms related to consumer decision making. When in a scarcity mindset compared with an abundance mindset, participants had increased activity in the orbitofrontal cortex, a region often implicated in valuation processes. Moreover, again compared with abundance, a scarcity mindset decreased activity in dorsolateral prefrontal cortex, an area well known for its role in goal-directed choice. This effect was predominant in the group of participants who experienced scarcity following abundance, suggesting that the effects of scarcity are largest when they are compared with previous situations when resources were plentiful. More broadly, these data suggest a potential neural locus for a scarcity mindset and demonstrate how these changes in brain activity might underlie goal-directed decision making.

Neurobiological Mechanisms of Responding to Injustice.

People are particularly sensitive to injustice. Accordingly, deeper knowledge regarding the processes that underlie the perception of injustice, and the subsequent decisions to either punish transgressors or compensate victims, is of important social value. By combining a novel decision-making paradigm with functional neuroimaging, we identified specific brain networks that are involved with both the perception of, and response to, social injustice, with reward-related regions preferentially involved in punishment compared with compensation. Developing a computational model of punishment allowed for disentangling the neural mechanisms and psychological motives underlying decisions of whether to punish and, subsequently, of how severely to punish. Results show that the neural mechanisms underlying punishment differ depending on whether one is directly affected by the injustice, or whether one is a third-party observer of a violation occurring to another. Specifically, the anterior insula was involved in decisions to punish following harm, whereas, in third-party scenarios, we found amygdala activity associated with punishment severity. Additionally, we used a pharmacological intervention using oxytocin, and found that oxytocin influenced participants' fairness expectations, and in particular enhanced the frequency of low punishments. Together, these results not only provide more insight into the fundamental brain mechanisms underlying punishment and compensation, but also illustrate the importance of taking an explorative, multimethod approach when unraveling the complex components of everyday decision-making.SIGNIFICANCE STATEMENT The perception of injustice is a fundamental precursor to many disagreements, from small struggles at the dinner table to wasteful conflict between cultures and countries. Despite its clear importance, relatively little is known about how the brain processes these violations. Taking an interdisciplinary approach, we combine methods from neuroscience, psychology, and economics to explore the neurobiological mechanisms involved in both the perception of injustice as well as the punishment and compensation decisions that follow. Using a novel behavioral paradigm, we identified specific brain networks, developed a computational model of punishment, and found that administrating the neuropeptide oxytocin increases the administration of low punishments of norm violations in particular. Results provide valuable insights into the fundamental neurobiological mechanisms underlying social injustice.

The neuroscience of social conformity: implications for fundamental and applied research.

The development of closer ties between researchers and practitioners in the domain of behavior and behavioral change offers useful opportunities for better informing public policy campaigns via a deeper understanding of the psychological processes that operate in real-world decision-making. Here, we focus on the domain of social conformity, and suggest that the recent emergence of laboratory work using neuroscientific techniques to probe the brain basis of social influence can prove a useful source of data to better inform models of conformity. In particular, we argue that this work can have an important role to play in better understanding the specific mechanisms at work in social conformity, in both validating and extending current psychological theories of this process, and in assessing how behavioral change can take place as a result of exposure to the judgments of others. We conclude by outlining some promising future directions in this domain, and indicating how this research could potentially be usefully applied to policy issues.

Norms and expectations in social decision-making.

Recent research has shown that stimulating right lateral prefrontal cortex (rLPFC) via transcranial direct current stimulation (tDCS) changes social norm compliance in economic decisions, with different types of compliance affected in different ways. More broadly considering the norms involved in decision-making, and in particular expectations held by players, can help clarify the mechanisms underlying these results.

Peer influence: neural mechanisms underlying in-group conformity.

People often conform to the behavior of others with whom they identify. However, it is unclear what fundamental mechanisms underlie this type of conformity. Here, we investigate the processes mediating in-group conformity by using functional magnetic resonance imaging (fMRI). Participants completed a perceptual decision-making task while undergoing fMRI, during which they were exposed to the judgments of both in-group and out-group members. Our data suggest that conformity to the in-group is mediated by both positive affect as well as the cognitive capacity of perspective taking. Examining the processes that drive in-group conformity by utilizing a basic decision-making paradigm combined with neuroimaging methods provides important insights into the potential mechanisms of conformity. These results may provide an integral step in developing more effective campaigns using group conformity as a tool for behavioral change.

The cooperative brain.

Cooperation is essential for the functioning of human societies. To better understand how cooperation both succeeds and fails, recent research in cognitive neuroscience has begun to explore novel paradigms to examine how cooperative mechanisms may be encoded in the brain. By combining functional neuroimaging techniques with simple but realistic tasks adapted from experimental economics, this approach allows for the discrimination and modeling of processes that are important in cooperative behavior. Here, we review evidence demonstrating that many of the processes underlying cooperation overlap with rather fundamental brain mechanisms, such as, for example, those involved in reward, punishment and learning. In addition, we review how social expectations induced by an interactive context and the experience of social emotions may influence cooperation and its associated underlying neural circuitry, and we describe factors that appear important for generating cooperation, such as the provision of incentives. These findings illustrate how cognitive neuroscience can contribute to the development of more accurate, brain-based, models of cooperative decision making.

The herding hormone: oxytocin stimulates in-group conformity.

People often conform to others with whom they associate. Surprisingly, however, little is known about the possible hormonal mechanisms that may underlie in-group conformity. Here, we examined whether conformity toward one's in-group is altered by oxytocin, a neuropeptide often implicated in social behavior. After administration of either oxytocin or a placebo, participants were asked to provide attractiveness ratings of unfamiliar visual stimuli. While viewing each stimulus, participants were shown ratings of that stimulus provided by both in-group and out-group members. Results demonstrated that on trials in which the ratings of the in-group and out-group were incongruent, the ratings of participants given oxytocin conformed to the ratings of their in-group but not of their out-group. Participants given a placebo did not show this in-group bias. These findings indicate that administration of oxytocin can influence subjective preferences, and they support the view that oxytocin's effects on social behavior are context dependent.

Neural correlates of dynamically evolving interpersonal ties predict prosocial behavior.

There is a growing interest for the determinants of human choice behavior in social settings. Upon initial contact, investment choices in social settings can be inherently risky, as the degree to which the other person will reciprocate is unknown. Nevertheless, people have been shown to exhibit prosocial behavior even in one-shot laboratory settings where all interaction has been taken away. A logical step has been to link such behavior to trait empathy-related neurobiological networks. However, as a social interaction unfolds, the degree of uncertainty with respect to the expected payoff of choice behavior may change as a function of the interaction. Here we attempt to capture this factor. We show that the interpersonal tie one develops with another person during interaction - rather than trait empathy - motivates investment in a public good that is shared with an anonymous interaction partner. We examined how individual differences in trait empathy and interpersonal ties modulate neural responses to imposed monetary sharing. After, but not before interaction in a public good game, sharing prompted activation of neural systems associated with reward (striatum), empathy (anterior insular cortex and anterior cingulate cortex) as well as altruism, and social significance [posterior superior temporal sulcus (pSTS)]. Although these activations could be linked to both empathy and interpersonal ties, only tie-related pSTS activation predicted prosocial behavior during subsequent interaction, suggesting a neural substrate for keeping track of social relevance.

The Quadruple Process model approach to examining the neural underpinnings of prejudice.

In order to investigate the systems underlying the automatic and controlled processes that support social attitudes, we conducted an fMRI study that combined an implicit measure of race attitudes with the Quadruple Process model (Quad model). A number of previous neural investigations have adopted the Implicit Association Test (IAT) to examine the automatic processes that contribute to social attitudes. Application of the Quad model builds on this previous research by permitting measures of distinct automatic and controlled processes that contribute to performance on the IAT. The present research found that prejudiced attitudes of ingroup favoritism were associated with amygdala, medial and right lateral orbitofrontal cortex. In contrast, prejudiced attitudes of outgroup negativity were associated with caudate and left lateral orbitofrontal cortex. Frontal regions found in previous neural research on the IAT, such as anterior cingulate, dorsolateral prefrontal cortex and operculum were associated with detecting appropriate responses in situations in which they conflict with automatic associations. Insula activity was associated with attitudes towards ingroup and outgroup members, as well as detecting appropriate behavior.

On the nature, modeling, and neural bases of social ties.

PURPOSE: This chapter addresses the nature, formalization, and neural bases of (affective) social ties and discusses the relevance of ties for health economics. A social tie is defined as an affective weight attached by an individual to the well-being of another individual ('utility interdependence'). Ties can be positive or negative, and symmetric or asymmetric between individuals. Characteristic of a social tie, as conceived of here, is that it develops over time under the influence of interaction, in contrast with a trait like altruism. Moreover, a tie is not related to strategic behavior such as reputation formation but seen as generated by affective responses. METHODOLOGY/APPROACH: A formalization is presented together with some supportive evidence from behavioral experiments. This is followed by a discussion of related psychological constructs and the presentation of suggestive existing neural findings. To help prepare the grounds for a model-based neural analysis some speculations on the neural networks involved are provided, together with suggestions for future research. FINDINGS: Social ties are not only found to be important from an economic viewpoint, it is also shown that they can be modeled and related to neural substrates. ORIGINALITY/VALUE OF THE CHAPTER: By providing an overview of the economic research on social ties and connecting it with the broader behavioral and neuroeconomics literature, the chapter may contribute to the development of a neuroeconomics of social ties.