Loss aversion in schizotypy: Investigating decision-making in those with a liability to schizophrenia

Abstract

Loss aversion seems to be diminished or absent in schizophrenia patients, so the current study investigated this phenomenon in schizotypy. Undergraduate students from the University of Otago completed a hypothetical loss aversion task which involved naming prices at which they would be willing to buy or sell a one in ten chance to win a prize. One prize was mainly hedonic (a holiday) and the other was mainly utilitarian (paid rent). Loss aversion was measured by the ratio of prices participants were willing to accept when selling/willing to pay when buying. It was hypothesised that a majority of participants would show loss aversion, and this would be seen to a greater extent in the hedonic scenario than the utilitarian one. It was also hypothesised that components of schizotypy would be associated with reduced loss aversion, as would low anticipatory pleasure, poor memory and aberrant salience. Results showed that participants were biased towards avoiding loss. There was significantly more loss aversion for the hedonic than the utilitarian scenario as expected. There was no significant association between loss aversion and schizotypy although there was a slight trend in the expected direction shown by a near significant relationship between cognitive-perceptual schizotypy and low utilitarian loss aversion. There was also a significant relationship between low anticipatory pleasure and low utilitarian loss aversion, while there was no significant association between memory or aberrant salience and loss aversion. Overall, results suggest there may be a relationship between severity of illness and abnormal decision-making.