Our attitude toward risk plays a crucial role in influencing our everyday decision-making. Despite its importance, little is known about how human risk-preference can be modulated by observing risky behavior in other agents at either the behavioral or the neural level. Using fMRI combined with computational modeling of behavioral data, we show that human risk-preference can be systematically altered by the act of observing and learning from others' risk-related decisions. The contagion is driven specifically by brain regions involved in the assessment of risk: the behavioral shift is implemented via a neural representation of risk in the caudate nucleus, whereas the representations of other decision-related variables such as expected value are not affected. Furthermore, we uncover neural computations underlying learning about others' riskpreferences and describe how these signals interact with the neural representation of risk in the caudate. Updating of the belief about others' preferences is associated with neural activity in the dorsolateral prefrontal cortex (dlPFC). Functional coupling between the dlPFC and the caudate correlates with the degree of susceptibility to the contagion effect, suggesting that a frontal-subcortical loop, the socalled dorsolateral prefrontal-striatal circuit, underlies the modulation of risk-preference. Taken together, these findings provide a mechanistic account for how observation of others' risky behavior can modulate an individual's own risk-preference.A n individual's attitude toward risk can exert a profound influence on his/her life in a wide array of contexts (1, 2). For example, risk-attitude governs an individual's decision to purchase a safe asset or to invest in a risky stock (3). Moreover, a risk-seeking attitude can lead to an increased tendency toward behaviors leading to adverse outcomes such as drug-taking, unsafe sexual behavior, pathological gambling, and other potentially life-threatening pursuits; on the other hand, a risk-averse tendency can result in a reduced prospect of attaining the potentially high gains associated with the pursuit of risky options (4, 5). Given the importance of risk-attitudes in influencing everyday behavior, considerable research has been conducted on the factors influencing risky decision-making. For instance, there is substantial evidence that a number of extraneous variables such as the framing of a decision context in terms of losses or gains (6, 7), exposure to stressful life events (8, 9), and experiences of losses and gains (10) can modulate risk-preferences.Less studied however is the role of a contagion effect (11) in modulating risk-seeking/averse behavior. That is, it remains elusive how one's risk-related behavior is influenced by observing the behavior of others. The role of contagion may be especially important for understanding how and why risky behavior can become manifest in a number of critical situations. For example, observing a peer's risk-seeking behaviors might exert a profound influence on conspecifics (12), res...