In most decision-making situations, there is a plethora of information potentially available to people. Deciding what information to gather and what to ignore is no small feat. How do decision makers determine in what sequence to collect information and when to stop? In two experiments, we administered a version of the German cities task developed by Gigerenzer and Goldstein (1996), in which participants had to decide which of two cities had the larger population. Decision makers were not provided with the (...) names of the cities, but they were able to collect different kinds of cues for both response alternatives (e.g., “Does this city have a university?”) before making a decision. Our experiments differed in whether participants were free to determine the number of cues they examined. We demonstrate that a novel model, using hierarchical latent mixtures and Bayesian inference (Lee & Newell, 2011) provides a more complete description of the data from both experiments than simple conventional strategies, such as the take–the–best or the Weighted Additive heuristics. (shrink)

Many theories on cognition assume that people adapt their decision strategies depending on the situation they face. To test if and how affect guides the selection of decision strategies, we conducted an online study (N = 166), where different mood states were induced through video clips. Results indicate that mood influenced the use of decision strategies. Negative mood, in particular anger, facilitated the use of non-compensatory strategies, whereas positive mood promoted compensatory decision rules. These results are in line with the (...) idea that positive mood broadens the focus of attention and thus increases the use of compensatory decision strategies that take many pieces of information into account, whereas negative mood narrows the focus of attention and thus fosters non-compensatory strategies that rely on a selective use of information. The results further indicate that gaining a deeper theoretical understanding of the cognitive mechanisms that govern decision processes requires taking emotions into account. (shrink)

Applying the framework of ecological rationality, the authors studied the adaptivity of group decision making. In detail, they investigated whether groups apply decision strategies conditional on their composition in terms of task‐relevant features. The authors focused on the recognition heuristic, so the task‐relevant features were the validity of the group members' recognition and knowledge, which influenced the potential performance of group strategies. Forty‐three three‐member groups performed an inference task in which they had to infer which of two German companies had (...) the higher market capitalization. Results based on the choice data support the hypothesis that groups adaptively apply the strategy that leads to the highest theoretically achievable performance. Time constraints had no effect on strategy use but did have an effect on the proportions of different types of arguments. Possible mechanisms underlying the adaptive use of recognition in group decision making are discussed. (shrink)

In this paper we contrast bounded and ecological rationality with a proposed alternative, generative rationality. Ecological approaches to rationality build on the idea of humans as “intuitive statisticians” while we argue for a more generative conception of humans as “probing organisms.” We first highlight how ecological rationality’s focus on cues and statistics is problematic for two reasons: the problem of cue salience, and the problem of cue uncertainty. We highlight these problems by revisiting the statistical and cue-based logic that underlies (...) ecological rationality, which originate from the misapplication of concepts in psychophysics. We then work through the most popular experimental task in the ecological rationality literature—the city size task—to illustrate how psychophysical assumptions have informally been linked to ecological rationality. After highlighting these problems, we contrast ecological rationality with a proposed alternative, generative rationality. Generative rationality builds on biology—in contrast to ecological rationality’s focus on statistics. We argue that in uncertain environments cues are rarely given or available for statistical processing. Therefore we focus on the psychogenesis of awareness rather than psychophysics of cues. For any agent or organism, environments “teem” with indefinite cues, meanings and potential objects, the salience or relevance of which is scarcely obvious based on their statistical or physical properties. We focus on organism-specificity and the organism-directed probing that shapes awareness and perception. Cues in teeming environments are noticed when they serve as cues-for-something, requiring what might be called a “cue-to-clue” transformation. In this sense, awareness toward a cue or cues is actively “grown.” We thus argue that perception might more productively be seen as the presentation of cues and objects rather than their representation. This generative approach not only applies to relatively mundane organism interactions with their environments—as well as organism-object relationships and their embodied nature—but also has significant implications for understanding the emergence of novelty in economic settings. We conclude with a discussion of how our arguments link with—but modify—Herbert Simon’s popular “scissors” metaphor, as it applies to bounded rationality and its implications for decision making in uncertain, teeming environments. (shrink)

How do agents with limited cognitive capacities flourish in informationally impoverished or unexpected circumstances? Aristotle argued that human flourishing emerged from knowing about the world and our place within it. If he is right, then the virtuous processes that produce knowledge, best explain flourishing. Influenced by Aristotle, virtue epistemology defends an analysis of knowledge where beliefs are evaluated for their truth and the intellectual virtue or competences relied on in their creation. However, human flourishing may emerge from how degrees of (...) ignorance are managed in an uncertain world. Perhaps decision-making in the shadow of knowledge best explains human wellbeing—a Bayesian approach? In this dissertation I argue that a hybrid of virtue and Bayesian epistemologies explains human flourishing—what I term homeostatic epistemology. Homeostatic epistemology supposes that an agent has a rational credence p when p is the product of reliable processes aligned with the norms of probability theory; whereas an agent knows that p when a rational credence p is the product of reliable processes such that: 1) p meets some relevant threshold for belief, 2) p coheres with a satisficing set of relevant beliefs and, 3) the relevant set of beliefs is coordinated appropriately to meet the integrated aims of the agent. Homeostatic epistemology recognizes that justificatory relationships between beliefs are constantly changing to combat uncertainties and to take advantage of predictable circumstances. Contrary to holism, justification is built up and broken down across limited sets like the anabolic and catabolic processes that maintain homeostasis in the cells, organs and systems of the body. It is the coordination of choristic sets of reliably produced beliefs that create the greatest flourishing given the limitations inherent in the situated agent. (shrink)