Value Directed Encoding - Win and Loss Framework

People tend to encode high-value information better than low-value information. This value-directed encoding effect (VDE) is usually studied in the context of future gains, whereas the impact of potential future losses has rarely been examined, particularly in recognition memory. This is a notable gap because behavioral economics suggests that subjects are highly motivated to avoid losses and that losses may capture more attention. Here, we compared the encoding of potential gains, losses, and neutral items in three recognition experiments. We also manipulated time constraints such that subjects had 1 second (Experiment 1), unlimited encoding time (Experiment 2), or 3 seconds (Experiment 3) to encode the valued words.