New Scientist reports that research recently published in the journal Nature indicates that men (though not generally women) find pleasure from seeing that those who cheat are physically punished.

The recently completed study at the Department of Imaging Neuroscience, University College (London) used functional magnetic resonance imaging (fMRI) to study brain waves in 32 test subjects following participation in a game called the Prisoner’s Dilemma.

fMRI, as you may recall, is the revolutionary technology that appears able to distinguish those telling lies from those telling the truth. Because it can map activity in segments of the brain in real time, allowing them to be compared to ideal or “normal” test subjects, fMRI also has uses in diagnosing diseases involving the brain.

Now it appears the uses are wider still.

Prisoner’s Dilemma tests relationships. The game allows players to quickly develop alliances with “allies” and designate others as “enemies.” It also allows people to “cheat” by double-crossing each other.

Immediately after playing a game, players watched other players be given punishing jolts of electricity. fMRI recorded that both men and women displayed increased brain activity in the fronto-singular and anterior cingulate cortices. This was viewed as an empathetic response, because these two areas would be more active if the person were him/herself being shocked.

Both sexes displayed slightly less “empathy” when “cheaters” were shocked. However, in men the drop was far more than in women. On the other hand, when “cheaters” were shocked men displayed a response that women didn’t: Brain regions associated with reward lit up.

The researchers concluded that men not only feel less empathy for cheaters, but actually derive pleasure from their punishment.

It’s not yet clear what these findings mean in terms of sexual differences. The University College researchers speculate that men have evolved to enforce justice in society. On the other hand, behavioral researcher David Sloan of Binghamton University cautions that other behavioral studies show that women react more slowly in matters of revenge, which would not be inconsistent with the study findings.

I don’t know what the study establishes regarding the particular question of empathy and revenge. Here’s what I do know: It’s far faster and less expensive to set up an experiment involving several dozen subjects over the course of several hours and measure their brain waves than to try and produce similar findings the old-fashioned way with questions, answers, and other indirect ways of testing.

I wouldn’t at all be surprised if Dr. Sloan and other behavioral researchers attempt to validate or disprove this study — not in the traditional laborious way of building a clever environment that fools the subjects over long periods of time, but rather by using fMRI in longer test situations.

For example, it should be easy to create a situation where some subjects perceive that they have been “cheated” of an amount of money that matters to them, such as $100. Their responses to punishment of the “cheater” would be measured not just immediately after the act of cheating, but also over longer intervals.

This should determine whether the difference between the sexes is one of how they react or just how long the reaction takes to manifest.

That’s a question of scientific interest. From an investing standpoint, this research provides further evidence that fMRI will enable scientists and engineers to do many things involving human beings more efficiently. I expect fMRI to be approved for use as part of drug testing protocols by the FDA in the next few years.

It seems likely that as costs of fMRI devices plummet, new uses will continue to manifest  For example, they might enable video games to directly respond to players’ emotional reactions.

I’ll be watching to see which companies figure this out first so we can invest in them.

To your profitable future,
Jonathan Kolber
January 24, 2007

P.S.: America’s most famous investor has already made over $550 million holding this stock — and he’s still got $839 million in shares — making it one of the biggest positions in his portfolio.

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