Psychological and biological sources of risk aversion

Psychological research suggests that individuals vary greatly in the degree they are willing to take risks. Despite intensive research on risk taking, the neurophysiological mechanisms behind risk behavior are still poorly understood. Moreover, most studies on this topic are conducted on men and focus on risk seeking. We believe that in order to redress this balance, it is important to explore the mechanisms behind risk aversion, with a particular focus on women.

This project aims to explore the psychological and physiological antecedents of risk aversion. More specifically, we aim to link differences in hormone levels with individual risk preferences, taking into account differences in temperament, affect and cognition. We aim to identify the temperamental and hormonal profiles of high and low risk avoiders, i.e. individuals who are highly vigilant to threats and avoid risks.

In this project we propose a series of four separate studies: 1) a study to adapt research methods for studying risk cognition, attitudes and behavior, 2) a study on women to examine the relationship between risk taking and hormone levels during the menstrual cycle, 3) a study on men to examine the relationship between risk taking and hormones levels, 4) a study on both men and women, addressing gender differences in risk-taking under stress in relation to reproductive hormone levels.

In Study 1 we will adapt research methods to study risk taking: computer-based reasoning and decision-making tasks and a risk attitude questionnaire. The main objective of Studies 2 and 3 is to study relations between risk taking and hormone levels in men and women. The levels of reproductive hormones estradiol and testosterone, as well as the levels of oxytocin, vasopressin and cortisol will be measured in multiple samples taken during full menstrual cycles (in women, Study 2) and during a one month sampling period (in men, Study 3). These repeated measurements will allow us to determine individuals’ characteristic hormone levels accurately. Moreover, the repeated measurements of hormone levels and risk taking behavior will allow us to link  hormone levels with the propensity to avoid risks. A follow-up Study, Study 4, will address the issue of gender differences in risk taking under stress in relation to reproductive hormone levels and the physiological markers of stress response.

The proposed studies will provide important data about the hormonal, neurophysiological and psychological underpinnings of risk seeking and avoidance, both in men and women. Combining this data with a precise estimation of the propensity to take risks, achieved through formal modeling, will contribute to an accurate description of the relation between physiological mechanisms and behavior.

Dr. Szymon Wichary

He is an assistant professor at the Interdisciplinary Center for Applied Cognitive Studies at Warsaw School of Social Sciences and Humanities.  His research interests focus on cognition-emotion interactions and the role of emotions and individual differences in decision making. In his research, he combines computerised cognitive tasks, psychophysiological methods and formal modeling of decision making. He studied Psychology and Biology at Jagiellonian University in Krakow and obtained his PhD in Psychology there in 2004. In the years 2000/2001 and 2003 he was a visiting predoctoral fellow at the Center for Adaptive Behavior and Cognition, Max Planck Institute for Human Development in Berlin. In 2010/2011 he was a postdoctoral fellow at the Center for Economic Psychology at the University of Basel.

Date of publication: 5^th Sep, 2012