Effects of reward context on feedback processing as indexed by time‐frequency analysis

The role of reward context has been investigated as an important factor in feedback processing. Previous work has demonstrated that the amplitude of the feedback negativity (FN) depends on the value of the outcome relative to the range of possible outcomes in a given context, not the objective value of the outcome. However, some research has shown that the FN does not scale with loss magnitude in loss‐only contexts, suggesting that some contexts do not show a pattern of context dependence. Methodologically, time‐frequency decomposition techniques have proven useful for isolating time‐domain ERP activity as separable processes indexed in delta (< 3 Hz) and theta (3–7 Hz). Thus, the current study assessed the role of context in a modified gambling feedback task using time‐frequency analysis to better isolate the underlying processes. Results revealed that theta was more context dependent and reflected a binary evaluation of bad versus good outcomes in the gain and even contexts. Delta was more context independent: good outcomes scaled linearly with reward magnitude and good‐bad differences scaled with context valence. Our findings reveal that theta and delta are differentially sensitive to context and that context valence may play a critical role in determining how the brain processes feedback.