A critical question is whether the same decision-making processes underlie task performance with hypothetical and real money as rewards. Across two studies, we administered the Balloon Analogue Risk Task to healthy young adults under these two reward conditions. We found that participants displayed greater risk aversion during trials immediately after the balloon exploded in the previous trial in case the reward was real money, than if the reward was hypothetical money and exhibited greater subjective ratings of regret following losing trials. Moreover, subjective regret ratings after the balloon exploded in the previous trial with real money correlated with risk-taking behavior changes in the current trial, whereas we did not observe this correlation with hypothetical monetary rewards. In addition, when we manipulated the real money amounts to be large or small, participants were more risk averse in the large real money condition compared to the real money amount, whereas we did not observe these differences with varying amounts of hypothetical money.
Keywords: Balloon Analogue Risk Task (BART); real and hypothetical money; regret; risk-taking.