The impact of scarcity mindset on risk decision-making: evidence from behavioral and ERP data

This study investigated the impact of the scarcity mindset on individual risk decisions, as well as its neural mechanisms, through two experiments: one behavioral experiment and one ERP experiment. The results of the behavioral experiment revealed that individuals with a scarcity mindset tend to be more risk-averse compared to those with a wealthy mindset. The effect of the scarcity mindset on risk decision-making could be modulated by the magnitude of the reward: individuals with a scarcity mindset were more risk-averse under higher reward levels, compared to lower reward levels. The ERP experiment results showed that under positive feedback conditions, there was no significant difference in the amplitudes of FRN and P300 responses induced by both the scarcity mindset and the wealthy mindset. However, under negative feedback conditions, the FRN and P300 responses induced by the scarcity mindset differed significantly from those induced by the wealthy mindset.