Betrayal is worse than loss during cooperation

Cooperative behavior refers to activities that benefit another individual or benefit both the person performing the behavior and the recipient. Although both betrayal aversion and loss aversion (the financial detriment incurred from betrayal) are established determinants of cooperative behavior, their relative potency remains undetermined. Here, we investigated these effects by integrating computational modeling and event-related potential (ERP) techniques. In two tasks involving risk and cooperation, participants decided whether to take financial risks or to cooperate under possible betrayal. Our results showed that betrayal aversion had a stronger effect on reducing cooperation compared to loss aversion. Furthermore, ERP data demonstrated a temporal pattern consistent with sequential processing: betrayal was encoded early in decision-making, reflected by increased P3 with weaker betrayal aversion, whereas loss aversion manifested later, marked by increased LPP. By dissociating the contributions of betrayal and loss, our finding provides novel insights into the cognitive and neural mechanisms underlying cooperative behavior.