Any instance (i.e., event, behavior, trait) belongs to infinitely many reference classes, hence there are infinitely many base rates from which to choose. People clearly do not entertain all possible reference classes, however, so something must be limiting the search space. We suggest some possible mechanisms that determine which reference class is evoked for the purpose of judgment and decision.

The environment in which humans evolved is strongly and positively autocorrelated in space and time. Probabilistic judgments based on the assumption of independence may not yield evolutionarily adaptive behavior. A number of “faults” of human reasoning are not faulty under fuzzy arithmetic, a nonprobabilistic calculus of reasoning under uncertainty that may be closer to that underlying human decision making.

Koehler's call for a reanalysis of the base rate fallacy is particularly important in the applied domain of accounting, since base rate data appear to be an important input for many accounting tasks. In this commentary I discuss the use of base rates in accounting and explain why more flexible standards of performance are important when judging the use of base rates.

The underutilization of base rates is a consistent finding. The strong claim that base rates are ignored has been rejected and this needs no further emphasis. Following the path of “normal science,” research examines the conditions predicting changes in the degree of underutilization. A scientific revolution that might dethrone the heuristics and biases paradigm is not in sight.

We discuss O&C's probabilistic approach from a probability logical point of view. Specifically, we comment on subjective probability, the indispensability of logic, the Ramsey test, the consequence relation, human nonmonotonic reasoning, intervals, generalized quantifiers, and rational analysis.

The fallacy beneath the base rate fallacy is that we know what a base rate is. We talk as if base rates and individuating information were two different kinds of information. From a Bayesian perspective, however, the only difference between base rate and individuating information is – which comes first.

We have been oversold on the base rate fallacy in probabilistic judgment from an empirical, normative, and methodological standpoint. At the empirical level, a thorough examination of the base rate literature (including the famous lawyer–engineer problem) does not support the conventional wisdom that people routinely ignore base rates. Quite the contrary, the literature shows that base rates are almost always used and that their degree of use depends on task structure and representation. Specifically, base rates play a relatively larger role (...) in tasks where base rates are implicitly learned or can be represented in frequentist terms. Base rates are also used more when they are reliable and relatively more diagnostic than available individuating information. At the normative level, the base rate fallacy should be rejected because few tasks map unambiguously into the narrow framework that is held up as the standard of good decision making. Mechanical applications of Bayes's theorem to identify performance errors are inappropriate when (1) key assumptions of the model are either unchecked or grossly violated, and (2) no attempt is made to identify the decision maker's goals, values, and task assumptions. Methodologically, the current approach is criticized for its failure to consider how the ambiguous, unreliable, and unstable base rates of the real world are and should be used. Where decision makers' assumptions and goals vary, and where performance criteria are complex, the traditional Bayesian standard is insufficient. Even where predictive accuracy is the goal in commonly defined problems, there may be situations (e.g., informationally redundant environments) in which base rates can be ignored with impunity. A more ecologically valid research program is called for. This program should emphasize the development of prescriptive theory in rich, realistic decision environments. (shrink)

Many researchers have suggested that premise interpretation errors can account, at least in part, for errors on categorical syllogisms. However, although it is possible to show that people make such errors in simple inference tasks, the evidence for them is far less clear when actual syllogisms are administered. Part of the problem is due to the lack of clear predictions for the solutions that would be expected when using modified quantifiers, assuming that correct inferences are made from them. This paper (...) presents the expected solutions for Gricean, reversible, and reversible Gricean interpretations, and evaluates these using three datasets (two currently available, and one new). The evidence supported the adoption of reversible and reversible Gricean interpretations, but not Gricean interpretations on their own. These results suggest that the categorical syllogism task tends to induce different quantifier interpretations from those identified in simple inference tasks. (shrink)

After 100+ years of studying syllogistic reasoning, what have we learned? Well, Riesterer and colleagues suggest that we have learned to throw away most of the data! If that seems like a bad idea to you then, be assured, that the authors agree with you. The sad fact is that the conclusion of “No Valid Conclusion” (NVC) is one of the most frequently selected responses in syllogistic reasoning but these “majority data” have been ignored by most researchers. Riesterer and colleagues (...) introduce heuristic rules for predicting NVC and provide directions to modelers on how to up their game. (shrink)

In this paper, the theory of syllogistic reasoning proposed by Johnson-Laird is shown to be inadequate and an alternative theory is put forward. Protocols of people attempting to solve syllogistic problems and explaining to another person how they reached their conclusions were obtained. Two main groups of subjects were identified. One group represented the relationship between classes in a spatial manner that was supplemented by a verbal representation. The other group used a primarily verbal representation. A detailed theory of the (...) processes for both groups is given. (shrink)

Commentators agree that simple conclusions about a general base rate fallacy are not appropriate. It is more constructive to identify conditions under which base rates are differentially weighted. Commentators also agree that improving the ecological validity of the research is desirable, although this is less important to those interested exclusively in psychological processes. The philosophers and ecologists among the commentators offer a kinder perspective on base rate reasoning than the psychologists. My own perspective is that the interesting questions (both psychological (...) and normative/prescriptive) are best answered through empirical studies that use real-world performance standards. (shrink)

Reasoning about social groups and their associated markers was investigated as a particular case of human reasoning about cue-category relationships. Assertions that reasoning involving cues and associated categories elicits specific probabilistic assumptions are supported by the results of three experiments. This phenomenon remains intact across the use of categorical syllogisms, conditional syllogisms, and the use of social groups that vary in their perceived cohesiveness, or entitativity. Implications are discussed for various theories of reasoning, and additional aspects of social group/coalitional reasoning (...) are also discussed. (shrink)

This commentary discusses three points: (1) The implications of the fact that it is rational to ignore base rates if probabilities are estimated by frequencies from samples without missing data (natural sampling); (2) second order probabilities distributions are a plausible way to model imprecise probabilities; and (3) Bayesian networks represent a normative reference for multi-cue models of probabilistic inference.

Two distinct issues are sometimes confused in the base rate literature: Why do people make logical mistakes in the assessment of probabilities? and why do subjects not use base rates the way experimenters do? The latter problem may often reflect differences in an implicit reference class rather than a disinclination to update a base rate by Bayes' theorem. Also important are considerations concerning the interaction of several potentially relevant base rates.

A system of intermediate quantifiers (“Most S are P”, “m/n S are P”) is proposed for evaluating the rationality of human syllogistic reasoning. Some relations between intermediate quantifiers and probabilistic interpretations are discussed. The paper concludes by the generalization of the atmosphere, matching and conversion hypothesis to syllogisms with intermediate quantifiers. Since our experiments are currently still running, most of the paper is theoretical and intended to stimulate psychological studies.

Base rates are vital in predicting violent criminal recidivism. However, both lay people given simulated prediction tasks and professionals milking real life predictions appear insensitive to variations in the base rate of violent recidivism. Although there are techniques to help decision makers attend to base rates, increased decision accuracy is better sought in improved actuarial models as opposed to improved clinicians.

1 Segmentando In psicologia da tempo si parla dell’“effetto atmosfera” eventualmente creato da certi sillogismi, segnatamente da quelli che “sentiamo” come maggiormente persuasivi del tutto indipendentemente dalla loro validità logica. Da due premesse particolari e affermative (alcuni A sono B, alcuni B sono C), ad esempio, molti sono indotti, appunto in virtù di questo effetto “atmosferico”, a trarre un’affermazione altrettanto particolare e affermativa ancorché erronea (alcuni A sono C), la...

We here report the findings of our investigation into the validity of the conjunction fallacy (Tversky & Kahneman, 1983), bearing in mind the role of conversational rules. Our first experiment showed that subjects found a logically correct answer unacceptable when it implied a violation of the conversational rules. We argue that tautological questions, such as those which concern the relationship of inclusion between a class and its sub-class, violate conversational rules because they are not informative. In this sense, it is (...) not understood that the question in a Linda-type problem involves a comparison between an inclusive and included class, but presumed that a different type of comparison is intended. Tautological questions (and, consequently, also their answers) do not become a matter of discussion except under certain specific conditions. Our second experiment showed that, providing the context was adequately marked (such as in the case of a rhetorical question), the conjunction fallacy disappears. In two further experiments, the implications of our view were compared with those of the other critical approaches to the heuristic programme: the classical pragmatic view (which we call logical complementarity) and the frequentist view. (shrink)

Koehler's summary and critique of research on the base rate fallacy is cogent and persuasive. However, he may have overstated the case, and his suggestions for future research may be too restrictive. We agree that methodological approaches to this topic should be broadened, but we argue that experimental laboratory research and the Bayesian normative standard are useful and should not be abandoned.

In contrast to traditional research on base-rate neglect, an ecologically-oriented research program would analyze the correspondence between cognitive algorithms and the nature of information in the environment. Bayesian computations turn out to be simpler when information is represented in frequency formats as opposed to the probability formats used in previous research. Frequency formats often enable even uninstructed subjects to perform Bayesian reasoning.

The aim of this article is to strengthen links between cognitive brain research and formal logic. The work covers three fundamental sorts of logical inferences: reasoning in the propositional calculus, i.e. inferences with the conditional “if...then”, reasoning in the predicate calculus, i.e. inferences based on quantifiers such as “all”, “some”, “none”, and reasoning with n-place relations. Studies with brain-damaged patients and neuroimaging experiments indicate that such logical inferences are implemented in overlapping but different bilateral cortical networks, including parts of the (...) fronto-temporal cortex, the posterior parietal cortex, and the visual cortices. I argue that these findings show that we do not use a single deterministic strategy for solving logical reasoning problems. This account resolves many disputes about how humans reason logically and why we sometimes deviate from the norms of formal logic. (shrink)

Abstract(1) The miscitations of seminal experiments in the base rate literature adds to the existing database of systematic miscitations of wellknown psychological experiments. These miscitations may be caused by a process of reconstructive remembering. (2) Representative design should be the methodological core of Koehler's call for ecologically valid research. This approach can benefit both basic and applied research.

A recent study showed physicians' reasoning about a realistic case to be ignorant of base rate. It also showed physicians interpreting information pertinent to base rate differently, depending on whether it was presented early or late in the case. Although these adult reasoners might do better if given hints through talk of relative frequencies, this would not prove that they had no problem of base rate neglect.

Base rates have no necessary relation to judgments that are not themselves probabilities. There is no logical imperative, for instance, that behavioral base rates must affect causal attributions or that base rate information should affect judgments of legal liability. Decision theorists should be cautious in arguing that base rates place normative constraints on judgments of anything other than posterior probabilities.

This commentary presents a self-assessment inventory that will allow readers to determine their own attitude toward the base rate fallacy and its literature. The inventory is scientifically valid but not Medicare/Medicaid reimbursable.

When base rates are learned and used in an experiential manner subjects show better base rate use, perhaps because the implicit learning system is engaged. A causal framework in which base rates are relevant might also be necessary. Humans might thus perform better on more ecologically valid tasks, which are likely to contain those three components.

This paper explores the question of what makes diagrammatic representations effective for human logical reasoning, focusing on how Euler diagrams support syllogistic reasoning. It is widely held that diagrammatic representations aid intuitive understanding of logical reasoning. In the psychological literature, however, it is still controversial whether and how Euler diagrams can aid untrained people to successfully conduct logical reasoning such as set-theoretic and syllogistic reasoning. To challenge the negative view, we build on the findings of modern diagrammatic logic and introduce (...) an Euler-style diagrammatic representation system that is designed to avoid problems inherent to a traditional version of Euler diagrams. It is hypothesized that Euler diagrams are effective not only in interpreting sentential premises but also in reasoning about semantic structures implicit in given sentences. To test the hypothesis, we compared Euler diagrams with other types of diagrams having different syntactic or semantic properties. Experiment compared the difference in performance between syllogistic reasoning with Euler diagrams and Venn diagrams. Additional analysis examined the case of a linear variant of Euler diagrams, in which set-relationships are represented by one-dimensional lines. The experimental results provide evidence supporting our hypothesis. It is argued that the efficacy of diagrams in supporting syllogistic reasoning crucially depends on the way they represent the relational information contained in categorical sentences. (shrink)

Abstract“NOISE” is a term we are using to describe a complex and distressing aspect of the bodily and cognitive experience of many very ill psychiatric patients. By “noise,” we mean an internally experienced state of crowding and confusion created by a variety of stimuli, the quantity, intensity and unpredictability of which make it difficult for individuals so afflicted to tolerate and organize their experience. Attempts to do so may only add to confusion and psychotic phenomena.

This paper is a preliminary inquiry into the nature of implication; how things are seen as ‘going together’ or following one from another. The argument presented here is that implication is non-logical and is central to the routine process of reason, induction and generalization. The organizing force underlying implication and practical inference is argued to be Von Domarus’ Principle , by which similarity on some dimension of interest ‘carries over’ to some other dimension of interest.One major difficulty with this formulation (...) is that where VDP is the only organizing force, incoherent utterances resembling the word salad of the schizophrenic are likely to result, quite a departure from the routine utterances of normals that a useful model should generate. Two important ways that normal speech and word salad differ are that, in the latter, associations are, first, often implausible or bizarre, and second, they are likely to be so personalistic as to be virtually inaccessible to others.These considerations led to a search for elements that would provide the corrections necessary to bring the products of a VDP based model of implication close to normal utterances in these two areas. One element that appears central, concerns the role of subjective probability in evaluating plausibility of associations. Also considered are aspects of ambiguities in ordinary language especially concerning number and probability. The problem of making associations accessible to others is mitigated by providing elements in the setting or the communication itself that act to highlight or salience the association intended to be communicated. Finally, suggestions for further research are presented. (shrink)

Consistent with Koehler's position, we propose a generalization of the base rate fallacy and earlier conservatism literatures. In studies using both traditional tasks and new tasks based on ecologically valid base rates, our subjects typically underweight individuating information at least as much as they underweight base rates. The implications of cue consistency for averaging heuristics are discussed.

Koehler is right that base rate information is used, to various degrees, both in laboratory tasks and in everyday life. However, it is not time to turn our backs on laboratory tasks and focus solely on ecologically valid decision making. Tightly controlled experimental data are still needed to understandhowbase rate information is used, and how this varies among groups.

Koehler is right to argue for more nuanced interpretation of base rate anomalies. These anomalies are best understood in relation to a broader class of cognitive anomalies, which are important for theory and practice. Recognizing a need for more nuanced analysis should not be taken as a license for treating the effects as “explained away.”.

Koehler's target article attempts a balanced view of the relevance of knowledge of base rates to judgments of subjective or credal probability, but he is not sensitive enough to the difference between requiring and permitting the equation of probability judgments with base rates, the interaction between precision of base rate and reference class information, and the possibility of indeterminate probability judgment.

Failure to consider base rate is regarded as potentially hazardous, mainly because its consideration is assumed to be determined solely by P(H/D), the probability of the individuating data if the hypothesis is true, and not at all by P(D/˜H), the probability if the hypothesis is false. However, when P(D/˜H) is unconfounded from P(D/H), it turns out to be the stronger determinant of base rate consideration.

Setting the two hypotheses of complete neglect and full use of base rates against each other is inappropriate. The proper question concerns the degree to which base rates are used (or neglected), and under what conditions. We outline alternative approaches and recommend regression analysis. Koehler's conclusion that we have been oversold on the base rate fallacy seems to be premature.

This paper reviews current psychological theories of syllogistic inference and establishes that despite their various merits they all contain deficiencies as theories of performance. It presents the results of two experiments, one using syllogisms and the other using three-term series problems, designed to elucidate how the arrangement of terms within the premises affects performance. These data are used in the construction of a theory based on the hypothesis that reasoners construct mental models of the premises, formulate informative conclusions about the (...) relations in the model, and search for alternative models that are counterexamples to these conclusions. This theory, which has been implemented in several computer programs, predicts that two principal factors should affect performance: the figure of the premises, and the number of models that they call for. These predictions were confirmed by a third experiment. Dans cet article sont passées en revue les théories psychologiques du traitement des syllogismes. On établit qu'en dépit de leurs mérites variés toutes sont en défaut en tant que théories de la performance. On présente les résultats de deux expériences, une utilisant des syllogismes et l'autre des problémes avec des séries de trois termes conçues pour élucider comment l'arrangement des termes dans les premises affecte la performance. Ces données sont utilisées pour construire une théorie fondée sur l'hypothése que les gens construisent des modèles mentaux des premises, formulent des conclusions explicites sur les relations dans le modèle et cherchent des modèles qui seraient des contre-exemples pour leurs conclusions. Cette théorie, utilisée dans plusieurs programmes d'ordinateur, prédit que deux principaux facteurs affectent la performance: la figure des premises et le nombre de; modèles qu'ils mettent en jeu. Cette prédiction est confirmée dans les trois expériences. (shrink)

The base rate literature has an opposite twin in the social psychological literature on stereotypes, which concludes that people use their preexisting beliefs about probabilistic category attributes too much, rather than not enough. This ironic discrepancy arises because beliefs about category attributes enhance accuracy when the beliefs are accurate and diminish accuracy when they are not. To determine the accuracy of base rate/stereotype beliefs requires research that addresses specific content.

Abstract(1) There is enough contradictory evidence regarding the role of base rates in category learning to confirm the nonexistence of biases in such learning. (2) It is not always possible to activate statistical reasoning through frequentist representation. (3) It is necessary to use the concept of systematic processing in reconsidering the published work on biases.

The important question is how people process probabilistic information, not whether they process it in accordance with a normative model that we never should have expected them to be capable of following. Experience is not the cure, as widely thought, to problems with utilizing base rate information.