The Teenage Brain: A Neuroeconomic Approach to Adolescent Decision Making
Anna C. K. Van Duijvenvoorde
Eveline A. Crone
SimpleOriginal

Summary

Scientists found an imbalance in teen brains between emotional/reward areas and control areas, explaining sensitivity to risk and social pressure. Using "neuroeconomics," they study how these areas interact during decisions.

2013

The Teenage Brain: A Neuroeconomic Approach to Adolescent Decision Making

Keywords Neuroscience; adolescence; brain development; risky decision-making; social decision-making; neuroeconomics

Abstract

Recent neuroscientific studies have pinpointed a relative imbalance between the development of subcortical-affective and prefrontal-control brain networks that creates specific sensitivities during adolescence. Despite these advances in understanding adolescent brain development, there is a strong need for a more mechanistic understanding of the way these limbic and frontal-cortical areas interact and contribute to adolescents’ risky and social decision-making. We discuss a neuroeconomic approach that has the potential to significantly forward the understanding of decision making in adolescence.

Introduction

Adolescence spans the developmental phase between childhood and adulthood; it starts with puberty (around approximately 9–10 years of age), during which numerous hormonal changes influence the body and brain (Spear, 2011), and extends into the early 20s, when adolescents learn to take adult roles and responsibilities (Dahl & Gunnar, 2009). In adolescence, there are pronounced changes in social-affective engagement, including increases in motivation, sensation seeking, and risk taking, as well as emerging sensitivities to social context and peer status (Steinberg, 2008). The increase in social-affective engagement provides several important advantages; for example, it provides adolescents with the motivational drive to actively explore their environment and pursue long-term goals. Yet it also comes with some challenges and potential health risks, such as when explorative risk taking or extreme sensitivities to social context lead to problems such as drug abuse, depression, or social withdrawal (Dahl, 2004).

Recently, several novel lines of research have explored the neurobiological mechanisms that contribute to adolescents’ sensitivity to social-affective contexts. One of the prevailing models, based on functional-neuroimaging studies, states that adolescent brain development is associated with a relatively fast development of limbic brain regions that respond to immediate social-affective states, such as the presence of rewards or other emotional stimuli, and a relatively slow development of frontal-parietal brain regions that allow for the regulation of emotions (Ernst & Fudge, 2009; Somerville, Jones, & Casey, 2010). Some studies have suggested that adolescence is associated with a peak in dopamine availability (Luciana, Wahlstrom, Porter, & Collins, 2012), which may lead to stronger social-affective responses. One of the key questions in moving this model forward is how the intensification of social-affective engagement is related to the interactions between these prefrontal-control and subcortical-affective networks (Crone & Dahl, 2012; Pfeifer & Allen, 2012).

In this review, we argue that a neuroeconomic approach has many advantages when aiming to understand the specific sensitivities in adolescents’ decision making. Neuroeconomics brings together fields of psychology, economy, neuroscience, and computational science to investigate how people make decisions (Sharp, Monterosso, & Montague, 2012). This interdisciplinary field uses a model-based approach to specify processes of decision making in a set of estimable parameters that can be linked to underlying neurobiology. That is to say, distinct parameters may be characterized for components of decision making (see also Rangel, Camerer, & Montague, 2008). Here, we dissociate the following components of adolescent decision making: (a) risky choice, (b) sensitivity to gains and losses, and (c) social perspective taking.

Risky Choice

One way in which developmental changes in decision making have been studied is by presenting children, adolescents, and adults with choices that can lead to rewarding outcomes with a known probability. This type of decision making is referred to as risky choice. Meta-analyses have demonstrated that in adults, a wide network of cortical areas is engaged during risky choice, including the ventral striatum, the posterior cingulate cortex, and the ventral-medial prefrontal cortex (PFC; Krain, Wilson, Arbuckle, Castellanos, & Milham, 2006; Levy, Snell, Nelson, Rustichini, & Glimcher, 2010; Mohr, Biele, & Heekeren, 2010).

One of the studies that focused on risky choice in a developmental sample (Van Leijenhorst, Gunther Moor, et al., 2010) used an economic-choice paradigm with participants from four age groups (ages 8–10, 12–14, 15–17, and 19–25). Participants were presented with choices between options with a high probability of a small reward (low-risk/ low-reward) and options with a low probability of a large reward (high-risk/high-reward). Results showed that on trials in which expected value of high- and low-risk options was equal, 8- to 10-year-olds chose mostly the high-risk/high-reward options, whereas adults chose mostly the low-risk/low-reward options; adolescents showed an intermediate pattern. These results seem to indicate a developmental decrease in taste for risk (i.e., increasing risk averseness). Neural results indicated, however, elevated ventral-medial PFC activity in adolescents, compared with children and adults, when choosing the high-risk/high-reward options.

From this heightened neural activity it is not yet clear which component of the high-risk/high-reward choice drives this specific sensitivity in adolescence. That is to say, because options that carry greater risks typically also carry greater rewards, it is difficult to estimate how these factors independently drive risky decision making across development. Therefore, the use of refined tasks together with a computational-model approach present a starting point for decomposing these influences on adolescents’ decision making. One example is the risk-return model, which describes an individual’s risk-taking behavior as a result of a trade-off between the expected return and the perceived risk of a choice (Weber, Blais, & Betz, 2002). Greater expected return makes an option more attractive, whereas greater perceived risk makes it less attractive. This model allows for estimation of both parameters in individuals’ choice behaviors, and although it originated in finance (using objective values as expected value and variance in returns as risks, respectively), it is applicable to a range of decision-making domains (see also Figner & Weber, 2011; Paulsen, Platt, Huettel, & Brannon, 2011).

Whereas in a risky choice the probabilities of outcomes are known, an ambiguous choice carries unknown information on the probability of a gain or loss. A recent study estimated individuals’ risk aversion and ambiguity aversion from choice behavior (Tymula et al., 2012). Results showed that adolescents, compared with adults, did not differ in their risk aversion but were more tolerant toward ambiguity—that is, adolescents showed a greater tendency to gamble when probabilities were not known. Together, these examples illustrate that a modeling approach has the potential to advance insights into the building blocks of adolescents’ risky decision making.

Sensitivity to Gains and Losses

A second component of adolescent decision making involves sensitivity to decision outcomes such as gains and losses. As a type of reward, gains are linked to dopamine innervations, which lead to a robust signal in the ventral striatum (Haber & Knutson, 2010). Several studies have reported that this ventral-striatum response to gains is elevated in adolescents compared with children and adults (Galvan, 2010; Van Leijenhorst, Gunther Moor, et al., 2010; Van Leijenhorst, Zanolie, et al., 2010) and that in “hot” (i.e., affective) contexts, specifically, adolescents are more prone to risky choices (Figner, Mackinlay, Wilkening, & Weber, 2009) and show less advantageous choice behavior (Van Duijvenvoorde, Jansen, Visser, & Huizenga, 2010). These findings have led to the hypothesis that rewards are particularly meaningful or arousing for adolescents (but see also Bjork, Smith, Chen, & Hommer, 2010, for a discussion on task-context sensitivity).

A more detailed analysis of sensitivity to gains and losses can be made by examining outcomes in relation to prior expectations. When decision outcomes (i.e., gains or losses) do not match expectations formed on the basis of previous trials, they trigger a learning signal that is referred to as a prediction error. A prediction error signals a mismatch between expected and obtained outcomes, and is therefore positive if outcomes are better than expected and negative if outcomes are worse than expected. One study showed that in probabilistic learning, adolescents (ages 13–19) show an elevated positive prediction error in the striatum compared with children (ages 8–12) and adults (ages 25–30; Cohen et al., 2010; see Fig. 1), which was thought to reflect adolescents’ increased motivation to obtain positive outcomes. In a comparable study using slightly different age groups, the prediction error itself was not different between children (ages 8–11), adolescents (ages 13–16), and late adolescents/young adults (ages 18–22), but the connectivity between the striatum and the medial frontal cortex changed with age, such that, following positive outcomes, it strengthened more among older participants than younger ones (Van den Bos, Cohen, Kahnt, & Crone, 2012). Thus, the way the ventral striatum responds to learning signals may be associated with the way individuals engage the frontal-parietal network.

Responses to gains and losses have also been studied in choice tasks involving gains and probabilistic losses, in which participants need to learn to maximize their outcomes. A developmental comparison showed that children and young adolescents, in contrast to adults, continued to be more reactive, that is, their choice behavior was driven more by occasional outcomes (Van Duijvenvoorde, Jansen, Bredman, & Huizenga, 2012). That is, they continued to change behavior after an occasional loss throughout the task, which resulted in lower overall outcomes. The ability to control choice behavior in response to gains and losses may depend specifically on the prefrontal cortex and its connections.

Together, these studies indicate that prediction-error signals from the striatum recruit a relatively flexible and goal-dependent activation of the frontal-parietal network that drives subsequent behavioral adjustments—that is, learning. The interaction between these networks may be specifically flexible in adolescents, which in some contexts might result in great steps in learning (e.g., when individuals are motivated to learn new complex music repertoires), but in other contexts may diminish learning (e.g., when individuals are distracted by conversations with peers during a boring lecture). Future challenges lie in investigating how different decision-making contexts or levels of motivation drive differences in learning.

Social Perspective Taking

One of the great challenges for adolescents is to learn how to navigate a complex social world and adjust to changes in social environments. A crucial component of navigating a social world is mentalizing, which is the ability to infer mental states of others, such as their intentions, beliefs, and desires. Two important component processes of mentalizing are perspective taking, or thinking about the intentions of others and consequences for others (Saxe & Kanwisher, 2003), and self-referential processing, which involves comparing consequences for oneself with consequences for others (Rilling & Sanfey, 2011). Several meta-analyses have demonstrated that in adults, perspective-taking is associated with activity in the temporal-parietal junction (TPJ), superior temporal sulcus, and the dorsal regions of the medial PFC (Denny, Kober, Wager, & Ochsner, 2012; Van Overwalle, 2009), whereas self-referential processing is associated with activity in the ventral medial PFC (Amodio & Frith, 2006; Denny et al., 2012). Activation in these regions, which together are sometimes referred to as the social brain, has been shown to change remarkably across adolescence and may influence adolescents’ perspective-taking ability in decision making (Blakemore, 2008).

A game-theoretical paradigm that has been useful for researching perspective taking is the Trust Game (Berg, Dickhaut, & McCabe, 1995). In the Trust Game, there are two players and a certain stake of money involved. The first player can decide either to divide the money independently or to trust the second player with the money, after which it is tripled. However, the second player now has the power to divide all of the money as he or she wishes. The second player can thus reciprocate the trust given (by dividing the money relatively fairly between him- or herself and the first player) or defect and keep the profit (giving none or only a small amount of the money back to the first player). Though there are many variations to the game, it usually involves a single transaction with an unknown other to avoid reputation effects.

In a developmental comparison of four age groups (ages 9–10, 12–14, 15–17, and 18–22), it was found that older participants, as second players, were more responsive to the perspective of the first player (Van den Bos, Westenberg, Van Dijk, & Crone, 2010). This was investigated by varying the amount of risk (i.e., the amount of money that could be lost) that the first player took by trusting the second player. Results showed that on high-risk trials, older adolescents and young adults were more likely to reciprocate trust than younger adolescents were. Results from a subsequent neuroimaging study revealed that, when receiving trust as second player, activation in the TPJ increased across adolescence. This neural response to being trusted correlated with a behavioral measure of perspective taking in the Trust Game, reinforcing the notion that the TPJ is important for perspective taking and that this ability increases with age (Van den Bos, Van Dijk, Westenberg, Rombouts, & Crone, 2011).

In addition, during the decision to defect trust—compared with the decision to reciprocate—medial PFC was more active in older adolescents and young adults than in younger adolescents. However, in younger adolescents, compared with a no-trust (baseline) decision, medial PFC was active for both reciprocate and defect trials (Van den Bos et al., 2011; see Fig. 2). These results are consistent with the notion that the ventral medial PFC is activated during self-referential processing (Denny et al., 2012; Rilling & Sanfey, 2011), which may be overly present in social decision making in early adolescence (Pfeifer, Lieberman, & Dapretto, 2007).

The question remains which signal biases adolescents toward a decision to reciprocate or defect trust. Adult studies have reported that in economic exchange tasks, larger striatum activity is linked to future cooperation and correlated with individuals’ prosocial tendencies (Rilling & Sanfey, 2011; Van den Bos, Van Dijk, Westenberg, Rombouts, & Crone, 2009). Currently, it is not well understood how the ventral-striatum response contributes to collaboration in adolescence, but the role of the ventral striatum in reward processing (Galvan, 2010) and prediction errors (Cohen et al., 2010) raises some compelling questions. For example, a heightened ventral-striatum response to outcomes of mutual cooperation (i.e., trust and reciprocation) in adolescents may correlate with a greater need for social acceptance during the formation of friendships and when striving for peer acceptance and admiration (Güroğlu et al., 2008). Future studies will benefit from using such economic paradigms to answer these important questions about social influences on adolescents’ behavior.

Conclusion

Adolescence is a period of marked changes in social-affective engagement. In this review, we have explored how the intensification of social-affective processing may influence adolescents’ decision making. Accordingly, we have discussed adolescents’ risky choice, sensitivity to gains and losses, and perspective taking as key components of decision making. We propose that a neuroeconomic approach, combining behavioral modeling and economic paradigms with brain-based measures, leads to new insights into the behavioral and neural mechanisms underlying adolescent decision making across a range of domains.

From this review, it is apparent that specific challenges remain, such as decomposing risky choice, investigating the influence of gains and losses on subsequent choices, and pinpointing the influence of social perspective taking in decision making. In all of these domains, a specific focus may be on the flexible interactions between subcortical and prefrontal-parietal regions that are thought to drive adolescent-specific sensitivities in decision making.

Although adolescence is often described as a period of heightened risk taking, the flexible nature of adolescence can also have several advantages for rapid learning and adjustment to changing social contexts. For example, it was found that midadolescents have certain benefits when it comes to creative problem solving (Kleibeuker, De Dreu, & Crone, 2013). Specific increases in motivation may also, for example, lead to quick learning of the use of multiple forms of social media. A better conceptualization of adolescents’ sensitivities will be an important step toward understanding the mechanisms underlying adolescent advantages, as well as specific dangerous behaviors.

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Abstract

Recent neuroscientific studies have pinpointed a relative imbalance between the development of subcortical-affective and prefrontal-control brain networks that creates specific sensitivities during adolescence. Despite these advances in understanding adolescent brain development, there is a strong need for a more mechanistic understanding of the way these limbic and frontal-cortical areas interact and contribute to adolescents’ risky and social decision-making. We discuss a neuroeconomic approach that has the potential to significantly forward the understanding of decision making in adolescence.

Introduction

Adolescence, a developmental phase marked by hormonal changes and social-affective engagement, is characterized by pronounced shifts in decision making. This review explores the neurobiological mechanisms underlying adolescents' sensitivities in decision making, drawing insights from the interdisciplinary field of neuroeconomics. By integrating behavioral modeling, economic paradigms, and brain-based measures, neuroeconomics offers a novel approach to understanding the building blocks of adolescent decision making.

Risky Choice

Studies have shown that adolescents exhibit a developmental decrease in risk aversion, as evidenced by their preference for high-risk/high-reward options. Neural findings indicate elevated ventral-medial prefrontal cortex activity in adolescents during risky choices, suggesting a heightened sensitivity to potential rewards. The use of computational models, such as the risk-return model, allows for the estimation of both expected return and perceived risk, providing insights into the factors driving adolescents' risk-taking behavior.

Sensitivity to Gains and Losses

Adolescents show an elevated ventral striatum response to gains, indicating a heightened sensitivity to rewards. Studies using probabilistic learning tasks have revealed a stronger positive prediction error in the striatum among adolescents, suggesting an increased motivation to obtain positive outcomes. The interaction between the striatum and the frontal-parietal network plays a crucial role in learning and behavioral adjustments in response to gains and losses.

Social Perspective Taking

Perspective taking, a key component of social cognition, involves considering the intentions and consequences for others. Neuroimaging studies have implicated the temporal-parietal junction and medial prefrontal cortex in perspective taking. These regions show increased activation across adolescence, suggesting a developmental enhancement in perspective-taking ability. In economic exchange tasks, older adolescents exhibit greater responsiveness to the perspective of others, as evidenced by increased activity in the temporal-parietal junction and medial prefrontal cortex. The ventral striatum may also play a role in social decision making, as its response to outcomes of mutual cooperation may correlate with adolescents' need for social acceptance.

Conclusion

The neuroeconomic approach provides valuable insights into the behavioral and neural mechanisms underlying adolescent decision making. By decomposing risky choice, investigating the influence of gains and losses, and examining social perspective taking, we can gain a deeper understanding of the specific sensitivities that characterize this developmental period. Further research is needed to explore the flexible interactions between subcortical and prefrontal-parietal regions, which are thought to drive adolescent-specific decision-making patterns. Understanding these sensitivities can inform interventions aimed at promoting healthy decision making and mitigating potential risks associated with adolescence.

Link to Article

Abstract

Recent neuroscientific studies have pinpointed a relative imbalance between the development of subcortical-affective and prefrontal-control brain networks that creates specific sensitivities during adolescence. Despite these advances in understanding adolescent brain development, there is a strong need for a more mechanistic understanding of the way these limbic and frontal-cortical areas interact and contribute to adolescents’ risky and social decision-making. We discuss a neuroeconomic approach that has the potential to significantly forward the understanding of decision making in adolescence.

Introduction

Adolescence, a time between childhood and adulthood, is marked by significant changes in how individuals engage with their social and emotional environments. These changes can influence decision-making processes in various ways. This article explores the neuroeconomic approach to understanding adolescent decision-making, focusing on three key components: risky choice, sensitivity to gains and losses, and social perspective taking.

Risky Choice

Risky choice involves selecting options with known probabilities of rewards or losses. Studies have shown that adolescents tend to exhibit a higher preference for high-risk/high-reward options compared to adults. This behavior is linked to increased activity in the ventral-medial prefrontal cortex, a brain region associated with reward processing. However, it's important to note that the specific factors driving this risk preference (e.g., rewards vs. risks) require further investigation.

Sensitivity to Gains and Losses

Adolescents also show heightened sensitivity to decision outcomes, such as gains (rewards) and losses. This sensitivity is reflected in increased activity in the ventral striatum, a brain region linked to dopamine release and reward signals. Studies suggest that adolescents experience a stronger positive prediction error (the difference between expected and actual outcomes) in the striatum, indicating a greater motivation to obtain positive outcomes. However, this sensitivity can also lead to less advantageous decision-making in certain contexts.

Social Perspective Taking

Navigating social environments requires perspective taking, the ability to understand others' intentions and consequences. Adolescents show developmental changes in brain regions associated with perspective taking, such as the temporal-parietal junction (TPJ). As they mature, adolescents become better at considering the perspectives of others in their decision-making. This ability is also linked to activity in the medial prefrontal cortex, which is involved in self-referential processing (comparing consequences for oneself vs. others).

Conclusion

The neuroeconomic approach provides valuable insights into the unique decision-making processes of adolescents. By combining behavioral modeling, economic paradigms, and brain-based measures, researchers can gain a deeper understanding of the neural mechanisms underlying adolescent sensitivities in risky choice, gain/loss processing, and social perspective taking. This knowledge can inform interventions and strategies aimed at promoting healthy decision-making and mitigating potential risks during this critical developmental period.

Link to Article

Abstract

Recent neuroscientific studies have pinpointed a relative imbalance between the development of subcortical-affective and prefrontal-control brain networks that creates specific sensitivities during adolescence. Despite these advances in understanding adolescent brain development, there is a strong need for a more mechanistic understanding of the way these limbic and frontal-cortical areas interact and contribute to adolescents’ risky and social decision-making. We discuss a neuroeconomic approach that has the potential to significantly forward the understanding of decision making in adolescence.

Introduction

In adolescence, the brain goes through some major changes that affect how a person thinks about and responds to the world around them.

Risky Business

When faced with a choice that could lead to a big reward but also carries a risk, how does a person decide? Studies have shown that teens tend to be more willing to take risks than adults. This is partly because the part of the brain that helps control impulses is still developing.

The Power of Gains and Losses

Another factor that influences teen decision-making is how they respond to rewards and setbacks. Research suggests that teens experience rewards more intensely than adults. This can make it harder for them to resist temptations or make choices that are in their best long-term interest.

Seeing Things from Others' Perspectives

As a person gets older, they become better at understanding the thoughts and feelings of others. This is called perspective-taking. Studies have shown that teens' ability to consider others' perspectives and to understand how their actions affects others improves as they get older.

The Brain Behind the Behavior

These changes in decision-making are linked to changes in the brain. The part of the brain that processes rewards and emotions is more active in teens than in adults. At the same time, the part of the brain that helps think logically and control behavior is still maturing. This combination can lead to some unique challenges and opportunities for teens.

Conclusion

Understanding how the brain is changing can help teens make better decisions. Remember that it's okay to take risks sometimes, but it's also important to think about the potential consequences. By considering the perspectives of others and learning to manage emotions, teens can navigate the challenges and opportunities of adolescence with confidence.

Link to Article

Abstract

Recent neuroscientific studies have pinpointed a relative imbalance between the development of subcortical-affective and prefrontal-control brain networks that creates specific sensitivities during adolescence. Despite these advances in understanding adolescent brain development, there is a strong need for a more mechanistic understanding of the way these limbic and frontal-cortical areas interact and contribute to adolescents’ risky and social decision-making. We discuss a neuroeconomic approach that has the potential to significantly forward the understanding of decision making in adolescence.

Introduction

As a person gets older, they start to make more decisions on their own. They might choose what to wear, what to eat, or who to hang out with. But scientists found that teens make decisions differently than adults.

Risky Choices

When a person have to choose between something that might be good but also a little risky, and something that's safe but not as exciting, what do they pick? Adults tend to choose the safe option, while teens are more likely to take the risk.

For example, if a teen had to choose between getting a small amount of money for sure or a chance to win a lot of money but also a chance to lose it all, teens would be more likely to take the chance for the big prize.

Being Excited by Rewards

When a child gets something they want, like a good grade or a new toy, they feels good. Well, that feeling is even stronger for teens. When teens get something they want, their brains get really excited. This might make them more likely to make choices that will give them a reward, even if it's a little risky.

Learning from Mistakes

When an adult makes a mistake, generally they can learn from it and try not to make the same mistake again. But teens are still learning how to do this well. Sometimes, they might keep making the same mistake over and over again, even if they know it's not a good idea.

Thinking About Others

Adults are usually pretty good at at understanding how their actions affect others, but teens are still learning. Sometimes, teens might make decisions that are good for them but not so good for others.

For example, if a teen is offered a chance to go to a party with their friends, they might say yes even if they know their parents would be upset. This is because teens are still figuring out how to balance their own needs with the needs of others.

Conclusion

Teens make decisions differently than adults because their brains are still developing. They're more likely to take risks, get excited by rewards, and have trouble thinking about others. But they're also learning and growing, and they can make great decisions when they put their minds to it.

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Footnotes and Citation

Cite

Van Duijvenvoorde, A. C. K., & Crone, E. A. (2013). The Teenage Brain: A Neuroeconomic Approach to Adolescent Decision Making. Current Directions in Psychological Science, 22(2), 108-113. https://doi.org/10.1177/0963721413475446

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