Irrational Behavior Linked to Financial Loss

by Kathy Jones on  June 17, 2012 at 6:59 PM Lifestyle News
RSS Email Print This Page Comment
Font : A-A+

A new study has stressed that financial loss can lead to irrational behavior and also affect our grasp of the true situation.
 Irrational Behavior Linked to Financial Loss
Irrational Behavior Linked to Financial Loss

The findings by scientists from the Weizmann Institute, Rehovot, Israel, may also have a bearing on our understanding of the neurological mechanisms underlying post-traumatic stress disorder.

Rony Paz and research student Offir Laufer of the Weizmann neurobiology department conducted an experiment in which subjects underwent a learning process based on classic conditioning and involving money, the Journal of Neuroscience reports.

The subjects were asked to listen to a series of tones composed of three different notes.

After hearing one note, they were told they had earned a certain sum; after a second note, they were informed that they had lost some of their money; and a third note was followed by the message that their bankroll would remain the same, according to a Weizmann statement.

According to the findings, when a note was tied to gain, or at least to no loss, the subjects improved over time in a learned task - distinguishing that note from other similar notes. But when they heard the "lose money" note, they actually got worse at telling one from the other.

Functional MRI (fMRI) scans of the brain areas involved in the learning process revealed an emotional aspect: The amygdala, which is tied to emotions and reward, was strongly involved.

The researchers also noted activity in another area in the front of the brain, which functions to moderate the emotional response. Subjects who exhibited stronger activity in this area showed less of a drop in their abilities to distinguish between tones.

"The evolutionary origins of that blurring of our ability to discriminate are positive: If the best response to the growl of a lion is to run quickly, it would be counterproductive to distinguish between different pitches of growl," said Paz.

"Any similar sound should make us flee without thinking. Unfortunately, that same blurring mechanism can be activated today in stress-inducing situations that are not life-threatening - like losing money - and this can harm us," added Paz.

That harm may even be quite serious: for instance, it may be involved in post-traumatic stress disorder.

If sufferers are unable to distinguish between a stimulus that should cause a panic response and similar, but non-threatening, stimuli, they may experience strong emotional reactions in inappropriate situations.

Source: IANS

Post your Comments

Comments should be on the topic and should not be abusive. The editorial team reserves the right to review and moderate the comments posted on the site.
* Your comment can be maximum of 2500 characters
Notify me when reply is posted
I agree to the terms and conditions

More News on:

Modified Atkins Diet: All You Need to Know 

News A - Z


News Search

Medindia Newsletters

Subscribe to our Free Newsletters!

Terms & Conditions and Privacy Policy.

Stay Connected

  • Available on the Android Market
  • Available on the App Store


News Category

News Archive