Neural mechanisms underlying competition-induced optimal decisions in individuals with high entrepreneurial intention.

ABSTRACT

In a rapidly changing and uncertain business environment, individuals with high entrepreneurial intention (HEI) inevitably need to compete or cooperate with others to maximize their gains. However, the effects of competition and cooperation on the risky decision-making and neural mechanisms of individuals with HEI are not clear. By combining the modified Devil Task and electroencephalogram (EEG) technology, the current study showed that a competition context is more likely to motivate optimal decisions and enhance the total decision gains for individuals with HEI than a cooperation context. A positive relationship between the frequency of optimal decisions and the total gains of decision-making for individuals with HEI was also found, and this relationship was mediated by the degree of entrepreneurial intention. The EEG results showed that individuals with HEI made decisions in the competition context with greater P2 amplitude of frontal regions than in the cooperation context, and source localization analyses revealed that this difference in brain activity was manifested in the medial prefrontal cortex. Finally, the results revealed a positive relationship between the P2 amplitude and the degree of entrepreneurial intention of individuals with HEI. Overall, the study suggests that competition is an effective way to motivate individuals with HEI to make optimal decisions and, thus, maximize their profits, providing new perspectives on ways to promote successful entrepreneurship.