Detecting Heterogeneous Risk Attitudes with Mixed Gambles

We propose a task for eliciting attitudes toward risk that is close to real-world risky decisions which typically involve gains and losses. The task consists of accepting or rejecting gambles that provide a gain with probability p and a loss with probability 1−p . We employ finite mixture models to uncover heterogeneity in risk preferences and find that (i) behavior is heterogeneous, with one half of the subjects behaving as expected utility maximizers, (ii) for the others, reference-dependent models perform better than those where subjects derive utility from final outcomes, (iii) models with sign-dependent decision weights perform better than those without, and (iv) there is no evidence for loss aversion. The procedure is sufficiently simple so that it can be easily used in field or lab experiments where risk elicitation is not the main experiment.

Exploring Brain Inhibition and Facilitation by Transcranial Magnetic Stimulation

Background and Question Paired-pulse TMS (Transcranial Magnetic Stimulation) paradigms allow explore motor cortex physiology. The Triple Stimulation Technique (TST) improves conventional TMS in quantifying cortico-spinal conduction. The objective of our study was to compare both methods in paired-pulse paradigms of inhibition and of facilitation. Method We investigated paired pulse paradigms of 2 ms (short intra-cortical inhibition) and of 10 ms intervals (intra cortical facilitation) in a randomized order in 22 healthy subjects applying conventional TMS and the TST protocol. Results Paired-pulse paradigms by both TMS and the TST yielded comparable results of short intra- cortical inhibition and intra cortical facilitation. However, the coefficient of variation was significantly smaller for SICI paradigm using TST. Conclusion These results suggest no greater sensitivity of the TST for quantifying inhibition and facilitation. The utility of TST to better quantify the individual amount of inhibition in SICI paradigms and its clinical utility need further studies.