High-Definition Transcranial Stimulation over the Dorsolateral Prefrontal Cortex Alters the Sunk Cost Effect: A Mental Accounting Framework

Abstract

The sunk cost effect refers to the fact that human decisions are consistently influenced by previous irrecoverable and irrelevant costs. Recent neuroimaging experiments suggest that the dorsolateral prefrontal cortex (dlPFC) plays a pivotal role in the sunk cost effect yet the causal and neurocomputational role of the dlPFC remains elusive. In this study, two cohorts of healthy human male and female adults were recruited to complete a novel two-step decision-making task during the anodal-sham or cathodal-sham high-definition transcranial direct current stimulation (HD-tDCS) over the dlPFC, respectively. Consistent with previous studies, we showed that the sunk cost deterred participants from making further investment and therefore engendered a de-escalation effect. Such behavior can be captured by a weighted mental accounting model with a recalibrated reference point in which the direction and magnitude of the sunk cost effects hinge on the decision weights apportioned to the option values. Interestingly, transcranial stimulation did not influence participants9 initial willingness to incur sunk costs but only altered sunk costs9 downstream effects. Specifically, anodal stimulation over the right dlPFC amplified the de-escalation effect of sunk costs whereas cathodal stimulation yielded the opposite result. HD-tDCS also changed the decision weights of the mental accounting model, providing a causal and computational link between PFC and sunk cost effects. SIGNIFICANCE STATEMENT Traditional economic theory assumes that decisions only concern the marginal costs and benefits yet human choices are notoriously susceptible to previously-incurred costs (termed the sunk cost effect). In the current study, we showed that direct current stimulation (DCS) of the right dorsolateral prefrontal cortex (dlPFC) altered sunk cost effects in participants9 subsequent choices. Such effects can be captured by a mental accounting model where transcranial stimulation modulates the decision weights assigned to different options in the value integration process. These findings help elucidate the computational and causal role of the dlPFC in the context of sunk costs.

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