Effects of loss aversion on neural responses to loss outcomes: An event-related potential study

•Loss aversion correlated positively with FRN amplitude at 233-263 ms.•Feedback related potentials were modelled by five equivalent source dipoles.•Amplitude of a source dipole in orbitofrontal cortex correlated with loss aversion.•Loss aversion is related to evaluation of outcomes in the orbitofrontal cortex.

Loss aversion is the tendency to prefer avoiding losses over acquiring gains of the same amount. To shed light on the spatio-temporal processes underlying loss aversion, we analysed the associations between individual loss aversion and electrophysiological responses to loss and gain outcomes in a monetary gamble task.Electroencephalographic feedback-related negativity (FRN) was computed in 29 healthy participants as the difference in electrical potentials between losses and gains. Loss aversion was evaluated using non-linear parametric fitting of choices in a separate gamble task.Loss aversion correlated positively with FRN amplitude (233-263 ms) at electrodes covering the lower face. Feedback related potentials were modelled by five equivalent source dipoles. From these dipoles, stronger activity in a source located in the orbitofrontal cortex was associated with loss aversion.The results suggest that loss aversion implemented during risky decision making is related to a valuation process in the orbitofrontal cortex, which manifests during learning choice outcomes.