Some theorists, ranging from W. James to contemporary psychologists, have argued that forgetting is the key to proper functioning of memory. The authors elaborate on the notion of beneficial forgetting by proposing that loss of information aids inference heuristics that exploit mnemonic information. To this end, the authors bring together 2 research programs that take an ecological approach to studying cognition. Specifically, they implement fast and frugal heuristics within the ACT-R cognitive architecture. Simulations of the recognition heuristic, which relies on (...) systematic failures of recognition to infer which of 2 objects scores higher on a criterion value, demonstrate that forgetting can boost accuracy by increasing the chances that only 1 object is recognized. Simulations of the fluency heuristic, which arrives at the same inference on the basis of the speed with which objects are recognized, indicate that forgetting aids the discrimination between the objects' recognition speeds. (shrink)

Most investigations into how people make risky choices have employed a simple drosophila: monetary gambles involving stated outcomes and probabilities. People are asked to make decisions from description . When people decide whether to back up their computer hard drive, cross a busy street, or go out on a date, however, they do not enjoy the convenience of stated outcomes and probabilities. People make such decisions either in the void of ignorance or in the twilight of their own often limited (...) experience of such real-world options. In the latter case, they make decisions from experience . Recent research has consistently documented that decisions from description and decisions from experience can lead to substantially different choices. Key in this description–experience gap is people’s treatment of rare events. In this paper, I briefly review studies that have documented the description–experience gap, offer several explanations for this gap, and discuss to what extent people’s decisions from experience are in conflict with benchmarks of rationality. (shrink)

. A partial analogy exists between the lifespan neuropsychological development of individuals and the biological evolution of species: In both of these major categories of growth, progressive emergence of wholes transcends inherently limited part‐processes. The remarkably small purview of each moment of consciousness experienced by an individual may be a crucial aspect of maintaining organization in that individual's cognitive development, protecting it from combinatorial chaos. In this essay I summarize experimental psychology research showing that working memory capacity comprises the so‐called (...) magical number 7±2 items, not only for words and digits but for spatial items and other sorts of cognitive materials, and not only in humans but also in other species. This is so to such an extent that 7±2 may be a “constant of nature.” The small quantity range 7±2 independent items, which builds upon a more elementary, instantaneous working memory capacity of three or four items, is surprisingly independent of the time duration of a cognitive task. Moreover, it is largely independent of ontogeny. Explanations of these powerful facts about working memory are offered here within both a functionalistic framework and a framework of hypothetical neural processes. At the neural level, working memory dynamics may comprise certain brain wave harmonics or topological relationships in the sheetlike cortex. Within the functionalistic framework, I suggest an additional analogy, pertaining to cultural evolution, with Tom Gilbert's work on risk analysis and “the global problematic” that follows from unforeseen consequences of the expansiveness of human ambition. Several connections are drawn with ideas presented by participants in the Chicago Religion and Science Group about how theologies and sciences try to understand the possibility of adaptive exercises of human freedom in the face of the extreme finiteness of each human individual. (shrink)

In this article, 41 models of covariation detection from 2 × 2 contingency tables were evaluated against past data in the literature and against data from new experiments. A new model was also included based on a limiting case of the normative phi‐coefficient under an extreme rarity assumption, which has been shown to be an important factor in covariation detection (McKenzie & Mikkelsen, 2007) and data selection (Hattori, 2002; Oaksford & Chater, 1994, 2003). The results were supportive of the new (...) model. To investigate its explanatory adequacy, a rational analysis using two computer simulations was conducted. These simulations revealed the environmental conditions and the memory restrictions under which the new model best approximates the normative model of covariation detection in these tasks. They thus demonstrated the adaptive rationality of the new model. (shrink)

Selection explanations explain some non-accidental generalizations in virtue of a selection process. Such explanations are not particulaizable - they do not transfer as explanations of the instances of such generalizations. This is unlike many explanations in the physical sciences, where the explanation of the general fact also provides an explanation of its instances (i.e. standard D-N explanations). Are selection explanations (e.g. in biology) therefore a different kind of explanation? I argue that to understand this issue, we need to see that (...) a standard D-N explanation of some non-accidental generalization (al Fs are Gs) may also ipso facto explain its contrapositive (all non-Gs are non-Fs), but the explanation is particularizable with respect to the former but not to the latter. This can be seen by noting that the Raven Paradox counterexample to the H-D model of confirmation also generates a counterexample to the D-N model of explanation (all ravens are black does not explain why the non-black shoe is a non-raven). In such cases it is natural to take the generalization with the positive predicates to have a particularizable explanation. However, this need not be the case, and in selection explanations it is the generalization with the positive predicates whose explanation is no particularizable. Thus there is no need to suppose that selection explanations are fundamentally different. (shrink)

A number of important decision domains, including decisions about hiring, global warming, and weather hazards, are characterized by a global–local incompatibility. These domains involve variables that cannot be observed by a single decision maker (DM) and require the integration of observations from locally available information cues. This paper presents a new bifocal lens model that describes how the structure of the environment can lead to a unique form of overconfidence when generalizing the reliability of the local environment to a global (...) scale. When the local environment does not reliably reflect the global environment, they are incompatible. While local perspectives vary across DMs, global–local incompatibility can be understood using the structure of classical test theory as the difference between (a) perceived estimates of the reliability derived from the local environment and (b) the true reliability of the local environment. I model global–local incompatibility as the difference between the true and estimated reliability when the assumptions of classical test theory are violated. Using a series of case studies and an empirical study, I demonstrate the widespread utility of this framework, and I conclude by discussing implications for cognitive–ecological theory, risk communication, and overconfidence. (shrink)

Beliefs like the Gambler's Fallacy and the Hot Hand have interested cognitive scientists, economists, and philosophers for centuries. We propose that these judgment patterns arise from the observer's mental models of the sequence-generating mechanism, moderated by the strength of belief in an a priori base rate. In six behavioral experiments, participants observed one of three mechanisms generating sequences of eight binary events: a random mechanical device, an intentional goal-directed actor, and a financial market. We systematically manipulated participants’ beliefs about the (...) base rate probabilities at which different outcomes were generated by each mechanism. Participants judged 18 sequences of outcomes produced by a mechanism with either an unknown base rate, a specified distribution of three equiprobable base rates, or a precise, fixed base rate. Six target sequences ended in streaks of between two and seven identical outcomes. The most common predictions for subsequent events were best described as pragmatic belief updating, expressed as an increasingly strong expectation that a streak of identical signals would repeat as the length of that streak increased. The exception to this pattern was for sequences generated by a random mechanical device with a fixed base rate of.50. Under this specific condition, participants exhibited a bias toward reversal of streaks, and this bias was larger when participants were asked to make a dichotomous choice versus a numerical probability rating. We review alternate accounts for the anomalous judgments of sequences and conclude with our favored interpretation that is based on Rabin's version of Tversky & Kahneman's Law of Small Numbers. (shrink)

To cope with the already large, and ever increasing, amount of information stored in organizational memory, “forgetting,” as an important human memory process, might be transferred to the organizational context. Especially in intentionally planned change processes (e.g., change management), forgetting is an important precondition to impede the recall of obsolete routines and adapt to new strategic objectives accompanied by new organizational routines. We first comprehensively review the literature on the need for organizational forgetting and particularly on accidental vs. intentional forgetting. (...) We discuss the current state of the art of theory and empirical evidence on forgetting from cognitive psychology in order to infer mechanisms applicable to the organizational context. In this respect, we emphasize retrieval theories and the relevance of retrieval cues important for forgetting. Subsequently, we transfer the empirical evidence that the elimination of retrieval cues leads to faster forgetting to the forgetting of organizational routines, as routines are part of organizational memory. We then propose a classification of cues (context, sensory, business process-related cues) that are relevant in the forgetting of routines, and discuss a meta-cue called the “situational strength” cue, which is relevant if cues of an old and a new routine are present simultaneously. Based on the classification as business process-related cues (information, team, task, object cues), we propose mechanisms to accelerate forgetting by eliminating specific cues based on the empirical and theoretical state of the art. We conclude that in intentional organizational change processes, the elimination of cues to accelerate forgetting should be used in change management practices. (shrink)

The statistics of small samples are often quite different from those of large samples, and this needs to be taken into account in assessing the rationality of human behavior. Specifically, in evaluating human responses to environmental statistics, it is the effective environment that matters; that is, the environment actually experienced by the agent needs to be considered, not simply long‐run frequencies. Significant deviations from long‐run statistics may arise through experiential limitations of the agent that stem from resource constraints and/or information‐processing (...) bounds. The article draws together recent work from a number of areas in judgment and decision making ranging from randomness perception (Hahn & Warren, ), information sampling (Hertwig & Pleskac, ; Kareev et al., ), and consequences of choice for exploration or exploitation (e.g., Denrell, ) to demonstrate how proper consideration of these deviations leads to reevaluation of behaviors that are otherwise deemed irrational. (shrink)