“…The FRN is a medial frontal negativity that appears approximately 200–300 ms following feedback presentation, which is larger following monetary losses than gains (Gehring & Willoughby, 2002; Walsh & Anderson, 2012). Holroyd and Coles (2002) first proposed that the FRN represents a reward prediction error “corresponding to the difference between the amount of reward obtained and the prior expected value of the reward,” indicating that the FRN amplitude should encode both valence and magnitude (see also Hajihosseini & Holroyd, 2013; Holroyd, Larsen, & Cohen, 2004). Since then, the cognitive function of the FRN has been debated for more than a decade, as many researchers suggest that this component reflects a binary rather than continuous evaluation of events along a good‐no good dimension, such that unfavorable feedback elicits a larger FRN than favorable feedback (e.g., Hajcak, Moser, Holroyd, & Simons, 2006; Yeung & Sanfey, 2004).…”