Study shows why it is so scary to lose money
[Via Reuters Health eLine]
WASHINGTON (Reuters) – People are afraid to lose money and an unusual study released on Monday explains why – the brain’s fear center controls the response to a gamble.
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The amygdala has a site of intense interest because it seems to be the crossroads from many emotional memories. It is interesting to see that some people with damaged amygdalas will actually bet in situations that few other people would. They had little fear.
I wonder if something similar, not damage but altered processing in the amygdala, allowed the coach for the New Orleans Saints, Sean Payton, to make some really awesome gambles in the Superbowl. In almost every one of his gambles, the odds were distinctly in his favor, yet most coaches would not have gambled.
In fact, the odds were substantially in his favor on the surprise onside kick. Statistics show that if you can succeed 37% of the time, you will be ahead. Yet surprise onside kicks work about 55% of the time. In fact, Payton felt they had a “60 or 70 percent chance.“
Yet, very few coaches would have done such a thing. Many, particularly in the Superbowl, get too conservative. Playing not to lose rather than to win. That is why so many Superbowls are so boring.
And Payton is even more of a gambler. He used $250,000 out of his own salary to bring in Gregg Williams as defensive coordinator. The defense that gave them enough confidence to go for it on 4th and short at the end of the first half. The defense that stopped the Colts, allowing the Saints to get the ball back and quickly get a field goal.
Instead of playing safe, so no one would second guess the calls, they went for it, with the attitude ‘we may never be here again so let’s go for broke.’ But, and this is key, every one of their gambles had a firm statistical basis, bringing some of the same approaches baseball does with situational probabilities.
This is the key difference between amygdala-damaged fearlessness and what the Saints did. Their fearless behavior was actually based on firm rational reasoning and really exposed the ultra-conservative nature of the NFL, at least in the Superbowl.


