Recent decades have seen a surge in interest in metaphilosophy. In particular there has been an interest in philosophical methodology. Various questions have been asked about philosophical methods. Are our methods any good? Can we improve upon them? Prior to such evaluative and ameliorative concerns, however, is the matter of what methods philosophers actually use. Worryingly, our understanding of philosophical methodology is impoverished in various respects. This article considers one particular respect in which we seem to be missing an important (...) part of the picture. While it is a received wisdom that the word “ intuition ” has exploded across analytic philosophy in recent decades, the article presents evidence that the explosion is apparent across a broad swathe of academia. It notes various implications for current methodological debates about the role of intuitions in philosophy. (shrink)

Cognitive algebra strongly disproved the representativeness heuristic almost before it was published; and therewith it also disproved the base rate fallacy. Cognitive algebra provides a theoretical foundation for judgment-decision theory through its joint solution to the two fundamental problems – true measurement of subjective values, and cognitive rules for integration of multiple determinants.

This article addresses the question whether we can know on the basis of folk intuitions that we have character traits. I answer in the negative, arguing that on any of the primary theories of knowledge, our intuitions about traits do not amount to knowledge. For instance, because we would attribute traits to one another regardless of whether we actually possessed such metaphysically robust dispositions, Nozickian sensitivity theory disqualifies our intuitions about traits from being knowledge. Yet we do think we know (...) that we have traits, so I am advancing an error theory, which means that I owe an account of why we fall into error. Why do we feel so comfortable navigating the language of traits if we lack knowledge of them? To answer this question, I refer to a slew of heuristics and biases. Some, like the fundamental attribution error, the false consensus effect, and the power of construal, pertain directly to trait attributions. Others are more general cognitive heuristics and biases whose relevance to trait attributions requires explanation and can be classed under the headings of input heuristics and biases and processing heuristics and biases. Input heuristics and biases include selection bias, availability bias, availability cascade, and anchoring. Processing heuristics and biases include disregard of base rates, disregard of regression to the mean, and confirmation bias. (shrink)

Financial literacy is essential for every individual concerned with public welfare and household portfolio choices. In this study, we investigate the impact of household financial literacy on individuals’ financial behavior using the China Household Financial Survey Data of 2015 and 2017. The results show that financial knowledge has significant current, long-term, and dynamic effects on financial behavior. This finding suggests that financial literacy is an important factor in shaping and improving financial behavior. Second, financial literacy can improve residents’ limited attention, (...) and residents with high attention tend to have formal bank accounts, participate in the stock market, and engage in financial behaviors in situations such as risky financial markets. High attention also helps to improve residents’ financial behavior. This relationship suggests that financial literacy positively impacts formal bank account holding, participation in financial markets, participation in commercial insurance, participation in pension plans, and credit card holdings through limited attention channels that facilitate access to specific financial information. In addition, heterogeneity analysis showed that the impact of financial literacy on financial behavior differs significantly between urban and rural households, between men and women, and between high and low education levels. The study provides valuable insights for policy implications to enhance financial literacy, such as carrying out financial training to improve residents’ knowledge about financial aspects, which further helps to optimize household financial decision-making. (shrink)

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.

Mercier & Sperber (M&S) argue for their argumentative theory in terms of communicative abilities. Insights can be gained by extending the discussion beyond human reasoning to rodent and robot navigation. The selection of arguments and conclusions that are mutually reinforcing can be cast as a form of abductive reasoning that I argue underlies the construction of cognitive maps in navigation tasks.

We present a new framework for combining logic with probability, and demonstrate the application of this framework to breast cancer prognosis. Background knowledge concerning breast cancer prognosis is represented using logical arguments. This background knowledge and a database are used to build a Bayesian net that captures the probabilistic relationships amongst the variables. Causal hypotheses gleaned from the Bayesian net in turn generate new arguments. The Bayesian net can be queried to help decide when one argument attacks another. The Bayesian (...) net is used to perform the prognosis, while the argumentation framework is used to provide a qualitative explanation of the prognosis. (shrink)

The surprise exam paradox is an apparently sound argument to the apparently absurd conclusion that a surprise exam cannot be given within a finite exam period. A closer look at the logic of the paradox shows the argument breaking down immediately. So why do the beginning stages of the argument appear sound in the first place? This paper presents an account of the paradox on which its allure is rooted in a common probabilistic mistake: the base rate fallacy. The account (...) predicts that the paradoxical argument should get less and less convincing as it goes along—a prediction I take to be welcome. On a bleaker note, the account suggests that the base rate fallacy may be more widespread than previously thought. (shrink)

Hume’s famous argument against the credibility of testimony about miracles invokes two premises: 1) The reliability of the witness (the extent to which he is informed and truthful) must be compared with the intrinsic probability of the miracle. 2) The initial probability of a miracle is always small enough to outweigh the improbability that the testimony is false (even when the witness is assumed to be reliable). I defend the first premise of the argument, showing that Hume’s argument can be (...) applied to purported observations of miracles, as well. I then show that Hume failed to provide an adequate support for his second premise. A more cogent defence can be provided for a weaker premise. The resultant argument has, consequently, a less sweeping conclusion than Hume’s. (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.

Many compelling examples have recently been provided in which people can achieve impressive epistemic success, e.g. draw highly accurate inferences, by using simple heuristics and very little information. This is possible by taking advantage of the features of the environment. The examples suggest an easy and appealing naturalization of rationality: on the one hand, people clearly can apply simple heuristics, and on the other hand, they intuitively ought do so when this brings them high accuracy at little cost.. The ‘ought-can’ (...) principle is satisfied, and rationality is meaningfully normative. We show, however, that this naturalization program is endangered by a computational wrinkle in the adaptation process taken to be responsible for this heuristics-based (‘ecological’) rationality: for the adaptation process to guarantee even minimal rationality, it requires astronomical computational resources, making the problem intractable. We consider various plausible auxiliary assumptions in attempt to remove this obstacle, and show that they do not succeed; intractability is a robust property of adaptation. We discuss the implications of our findings for the project of naturalizing rationality. (shrink)

This commentary focuses on the parts of psychological game theory dealing with preference, as illustrated by team reasoning, and supports the conclusion that these theoretical notions do not contribute above and beyond existing theory in understanding social interaction. In particular, psychology and games are already bridged by a comprehensive, formal, and inherently psychological theory, interdependence theory (Kelley & Thibaut 1978; Kelley et al. 2003), which has been demonstrated to account for a wide variety of social interaction phenomena.

Many economic theorists hold that social institutions can lead otherwise irrational agents to approximate the predictions of traditional rational choice theory. But there is little consensus on how institutions do so. I defend an economic internalist account of the institution-actor relationship by explaining economic rationality as a feature of individuals whose decision-making is aided by institutional structures. This approach, known as the subjective transaction costs theory, represents apparently irrational behavior as a rational response to high subjective transaction costs of thinking (...) and deciding. The theory has two attractive features. First, it reconciles rational choice theory with the increasing body of evidence cataloguing putative errors in economic decision-making. Second, it vindicates the explanatory power of individual choice against externalist challenges; the subjective transaction costs theory keeps economic rationality in the head. (shrink)

The mind constructs narratives from what would otherwise be chaos. Narratives viewed minimally—at least two temporally ordered events—are revealed in the way people talk about space and time. Narratives replete with a voice, causality, and emotion are reflected in the stories people tell about their own lives, stories that, as acknowledged by their tellers, distort the details around 60% of the time, but, according to their tellers, distort the 'truth' far less often.

How can anyone be rational in a world where knowledge is limited, time is pressing, and deep thought is often an unattainable luxury? Traditional models of unbounded rationality and optimization in cognitive science, economics, and animal behavior have tended to view decision-makers as possessing supernatural powers of reason, limitless knowledge, and endless time. But understanding decisions in the real world requires a more psychologically plausible notion of bounded rationality. In Simple heuristics that make us smart (Gigerenzer et al. 1999), we (...) explore fast and frugal heuristics – simple rules in the mind's adaptive toolbox for making decisions with realistic mental resources. These heuristics can enable both living organisms and artificial systems to make smart choices quickly and with a minimum of information by exploiting the way that information is structured in particular environments. In this précis, we show how simple building blocks that control information search, stop search, and make decisions can be put together to form classes of heuristics, including: ignorance-based and one-reason decision making for choice, elimination models for categorization, and satisficing heuristics for sequential search. These simple heuristics perform comparably to more complex algorithms, particularly when generalizing to new data – that is, simplicity leads to robustness. We present evidence regarding when people use simple heuristics and describe the challenges to be addressed by this research program. Key Words: adaptive toolbox; bounded rationality; decision making; elimination models; environment structure; heuristics; ignorance-based reasoning; limited information search; robustness; satisficing; simplicity. (shrink)

Although widely studied in other domains, relatively little is known about the metacognitive processes that monitor and control behaviour during reasoning and decision-making. In this paper, we examined the conditions under which two fluency cues are used to monitor initial reasoning: answer fluency, or the speed with which the initial, intuitive answer is produced, and perceptual fluency, or the ease with which problems can be read. The first two experiments demonstrated that answer fluency reliably predicted Feeling of Rightness judgments to (...) conditional inferences and base rate problems, which subsequently predicted the amount of deliberate processing as measured by thinking time and answer changes; answer fluency also predicted retrospective confidence judgments. Moreover, the effect of answer fluency on reasoning was independent from the effect of perceptual fluency, establishing that these are empirically independent constructs. In five experiments with a variety of reasoning problems similar to those of Alter et al., we found no effect of perceptual fluency on FOR, retrospective confidence or accuracy; however, we did observe that participants spent more time thinking about hard to read stimuli, although this additional time did not result in answer changes. In our final two experiments, we found that perceptual disfluency increased accuracy on the CRT, but only amongst participants of high cognitive ability. As Alter et al.’s samples were gathered from prestigious universities, collectively, the data to this point suggest that perceptual fluency prompts additional processing in general, but this processing may results in higher accuracy only for the most cognitively able. (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.

Using normative correctness as a diagnostic tool reduces the outcome of complex cognitive functions to a binary classification (normative or non-normative). It also focuses attention on outcomes, rather than processes, impeding the development of good cognitive theories. Given that both normative and non-normative responses may be produced by the same process, normativity is a poor indicator of underlying processes.

If reason is a real causal force,operative in some, but not all ofour cognition and conation, then itought to be possible to tell anaturalistic story that distinguishes themind which is moved byreason from the mind which is movedby forces other than reason.This essay proposes some steps towardthat end. I proceed by showingthat it is possible to reconcile certainemerging psychological ideasabout the causal powers of themind/brain with a venerablephilosophical vision of reason as the facultyof norms. My accountof reason is psychologistic, social, (...) and consistent with anevolutionary approach to mind. The account preserves thenormativity by deflating it. But I argue that onlysuch deflated normativity has any chance of beingmade naturalistically respectable. (shrink)

Mercier & Sperber (M&S) claim that the phenomenon of belief bias provides fundamental support for their argumentative theory and its basis in intuitive judgement. We propose that chronometric evidence necessitates a more nuanced account of belief bias that is not readily captured by argumentative theory.

Decision making theory in general, and mental models in particular, associate judgment and choice. Decision choice follows probability estimates and errors in choice derive mainly from errors in judgment. In the studies reported here we use the Monty Hall dilemma to illustrate that judgment and choice do not always go together, and that such a dissociation can lead to better decision-making. Specifically, we demonstrate that in certain decision problems, exceeding working memory limitations can actually improve decision choice. We show across (...) four experiments that increasing the number of choice alternatives forces people to collapse choices together, resulting in better decision-making. While choice performance improves, probability judgments do not change, thus demonstrating an important dissociation between choice and probability judgments. We propose the Collapsing Choice Theory (CCT) which explains how working memory capacity, probability estimation, choice alternatives, judgment, and regret all interact and effect decision quality. (shrink)

Various real and imagined criminal law cases rest on “naked statistical evidence”. That is, they rest more or less entirely on a probability for guilt/liability derived from a single statistical model. The intuition is that there is something missing in these cases, high as the probability for guilt/liability may be, such that the relevant standard for legal proof is not met. Here we contribute to the considerable debate about how this intuition is best explained and what it teaches us about (...) evidential reasoning in the legal setting. We part ways with the recent scholarship, however. Unlike most others, our diagnosis is not that there is an important qualitative property that some evidence or bodies of evidence have, and that naked statistical evidence, most strikingly, lacks. Rather, we see cases resting on naked statistical evidence as lying at the extreme of a continuum of cases that are vulnerable to challenge due to “meta-uncertainty” about the underlying model. (shrink)

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.

Near the end of his target article, Baron argues that we need to address the question of how to conduct education in consequentialist decision making. However, recent trends in education have deemphasized and denigrated decentered and decontextualized thought. It is argued here that perspective decentering and decontextualized thinking are absolutely essential to the development of consequentialist reasoning.

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.