This paper presents a number of apparent anomalies in rational choice scenarios, and their translation into the logic of everyday reasoning. Three classes of examples that have been discussed in the context of probabilistic choice since the 1960s (by Debreu, Tversky and others) are analyzed in a non-probabilistic setting. It is shown how they can at the same time be regarded as logical problems that concern the drawing of defeasible inferences from a given information base. I argue that initial appearances (...) notwithstanding, these cases should not be classed as instances of irrationality in choice or reasoning. One way of explaining away their apparent oddity is to view certain aspects of these examples as making particular options salient. The decision problems in point can then be solved by ‘picking’ these options, although they could not have been ‘chosen’ in a principled way, due to ties or incomparabilities with alternative options. (shrink)

Quantum probability models may supersede existing probabilistic models because they account for behaviour inconsistent with classical probability theory that are attributable to normal limitations of cognition. This intriguing position, however, may overstate weaknesses in classical probability theory by underestimating the role of current knowledge states and may under-employ available knowledge about the limitations of cognitive processes. In addition, flexibility in model specification has risks for the use of quantum probability.

Abstract:The effectiveness of heuristics has received contradicting interpretations in the behavioural sciences. We study the policy implications of two programmes that dispute the effectiveness of heuristics – the biases and heuristics and the fast and frugal heuristics programmes. While the first blames heuristics for most errors in judgement, the second posits heuristics as simple mental algorithms that work well in a range of environments. We argue that the fast and frugal programme is less paternalistic insofar as it models humans as (...) effective decision-makers in a range of environments. However, in the rapidly changing environments of the 21st century, both are needed to inform evidence-based policies. (shrink)

The relations between rationality and optimization have been widely discussed in the wake of Herbert Simon's work, with the common conclusion that the rationality concept does not imply the optimization principle. The paper is partly concerned with adding evidence for this view, but its main, more challenging objective is to question the converse implication from optimization to rationality, which is accepted even by bounded rationality theorists. We discuss three topics in succession: (1) rationally defensible cyclical choices, (2) the revealed preference (...) theory of optimization, and (3) the infinite regress of optimization. We conclude that (1) and (2) provide evidence only for the weak thesis that rationality does not imply optimization. But (3) is seen to deliver a significant argument for the strong thesis that optimization does not imply rationality. (shrink)

A framing effect occurs when an agent's choices are not invariant under changes in the way a decision problem is presented, e.g. changes in the way options are described (violation of description invariance) or preferences are elicited (violation of procedure invariance). Here we identify those rationality violations that underlie framing effects. We attribute to the agent a sequential decision process in which a “target” proposition and several “background” propositions are considered. We suggest that the agent exhibits a framing effect if (...) and only if two conditions are met. First, different presentations of the decision problem lead the agent to consider the propositions in a different order (the empirical condition). Second, different such “decision paths” lead to different decisions on the target proposition (the logical condition). The second condition holds when the agent's initial dispositions on the propositions are “implicitly inconsistent,” which may be caused by violations of “deductive closure.” Our account is consistent with some observations made by psychologists and provides a unified framework for explaining violations of description and procedure invariance. (shrink)

Prior to the twentieth century, theories of knowledge were inherently perceptual. Since then, developments in logic, statis- tics, and programming languages have inspired amodal theories that rest on principles fundamentally different from those underlying perception. In addition, perceptual approaches have become widely viewed as untenable because they are assumed to implement record- ing systems, not conceptual systems. A perceptual theory of knowledge is developed here in the context of current cognitive science and neuroscience. During perceptual experience, association areas in the (...) brain capture bottom-up patterns of activation in sensory-motor areas. Later, in a top-down manner, association areas partially reactivate sensory-motor areas to implement perceptual symbols. The stor- age and reactivation of perceptual symbols operates at the level of perceptual components – not at the level of holistic perceptual expe- riences. Through the use of selective attention, schematic representations of perceptual components are extracted from experience and stored in memory (e.g., individual memories of green, purr, hot). As memories of the same component become organized around a com- mon frame, they implement a simulator that produces limitless simulations of the component (e.g., simulations of purr). Not only do such simulators develop for aspects of sensory experience, they also develop for aspects of proprioception (e.g., lift, run) and introspec- tion (e.g., compare, memory, happy, hungry). Once established, these simulators implement a basic conceptual system that represents types, supports categorization, and produces categorical inferences. These simulators further support productivity, propositions, and ab- stract concepts, thereby implementing a fully functional conceptual system. Productivity results from integrating simulators combinato- rially and recursively to produce complex simulations. Propositions result from binding simulators to perceived individuals to represent type-token relations. Abstract concepts are grounded in complex simulations of combined physical and introspective events. Thus, a per- ceptual theory of knowledge can implement a fully functional conceptual system while avoiding problems associated with amodal sym- bol systems. Implications for cognition, neuroscience, evolution, development, and artificial intelligence are explored. (shrink)

Generalisation, universal knowledge claims, and recommendations within disaster studies are problematic because they lead to miscommunication and the misapplication of actionable knowledge. The consequences and impacts thereof are not often considered by experts; forgone as irrelevant to the academic division of labour. There is a disconnect between expert assertions for disaster risk reduction (DRR) and their practical suitability for laypersons. Experts currently assert independently of the context within which protective action measures (PAMs) are to be used, measures unconnected to the (...) people for whom they are developed. This has knock-on effects for DRR: much expert-generated science and policy remains unused, unimplemented, and sometimes misapplied. I use philosophical accounts of assertion and epistemic blame to highlight the epistemic relationship between experts and laypersons. This relationship includes responsibilities and agreements between epistemic agents. Since multilevel DRR knowledge still transfers top-down from experts to laypersons, if experts impair the epistemic relationship, they can be held epistemically blameworthy. To address the pervasiveness of top-down systems, I analyse the epistemic framings and narratives currently shaping DRR, and more specifically PAMs and campaigns. I deconstruct universal perspectives that dominate the epistemic processes of generating, disseminating, and implementing DRR knowledge and specifically for co-seismic landslide PAMs for Nepal. I argue for more inclusive, contextual, and epistemically responsible DRR. Co-production of knowledge should begin from the standpoints of marginalised persons who may have an epistemic advantage due to their socio-politically marginalised positions. Often these epistemic contributions are left out of DRR efforts because marginalised persons are rarely afforded equal, if any, epistemic agency, which results in epistemic gaps and a large pool of relevant knowledge remaining unincorporated and unused in DRR research and policy. (shrink)

How do mushroom foragers make safe and efficient decisions under high degrees of uncertainty, or deal with the genuine risks of misidentification and poisoning? This article is an inquiry into ecological rationality, heuristics, perception, and decision-making in mushroom foraging. By surveying 894 Finnish mushroom foragers with a total of 22,304 years of foraging experience, this article illustrates how socially learned rules of thumb and heuristics are used in mushroom foraging. It illustrates how traditional foraging cultures have evolved precautionary principles to (...) deal with uncertainties and poisonous species, and how foragers leverage both simple heuristics and complex cognitive strategies in their search for, and identification of, mushrooms. Foragers also develop selective attention through experience. The results invite us to consider whether other human foraging cultures might use heuristics similarly, how and why such traditions have culturally evolved, and whether early hunter-gatherers might have used fast and frugal heuristics to deal with uncertainty. (shrink)

The book is addressed to all readers interested in cognitive science, and especially in research combining a logical analysis with psychological, linguistic and neurobiological approaches. The publication is the result of a collaboration between the Department of Cognitive Science at University of Lodz and the Department of Cognitive Science at Lund University. It is intended to provide a comprehensive presentation of the key research issues undertaken in both Departments, including considerations on meaning, natural language and reasoning, linguistic as well as (...) numerical competence, the theory of decision making, modelling of conceptual representations, cognitive and game theoretic approach to social interactions. (shrink)

People cannot contemplate a proposition without believing that proposition. A model of belief fixation is sketched and used to explain hitherto disparate, recalcitrant, and somewhat mysterious psychological phenomena and philosophical paradoxes. Toward this end I also contend that our intuitive understanding of the workings of introspection is mistaken. In particular, I argue that propositional attitudes are beyond the grasp of our introspective capacities. We learn about our beliefs from observing our behavior, not from introspecting our stock beliefs. -/- The model (...) of belief fixation offered in the dissertation poses a novel dilemma for theories of rationality. One might have thought that the ability to contemplate ideas while withholding assent is a necessary condition on rationality. In short, it seems that rational creatures shouldn‘t just form their beliefs based on whatever they happen to think. However, it seems that we are creatures that automatically and reflexively form our beliefs based on whatever propositions we happen to consider. Thus, either the rational requirement that states that we must have evidence for our beliefs must be jettisoned or we must accept the conclusion that we are necessarily irrational. (shrink)

The options that people face are rarely ideal: they are good in some ways and poor in others. People have problems choosing among such options because they don’t know which ends to favor. Multiple objectives pose a problem not only for decision makers, but also for our account of decision making. People act to achieve their ends given their beliefs. In order to handle decisions with multiple objectives, however, this story must be supplemented by an account of which ends are (...) implicated in which decisions (e.g., do individual goals guide particular choices? do different ends jointly pick out courses of action?). Unfortunately, such an account is lacking. As a result, there is a gap (at least) in our most basic account of human behavior. In this paper I explore that gap and examine some proposals for closing it. (shrink)

In this paper an empirical theory about the nature of intention is sketched. After stressing the necessity of reckoning with intentions in philosophy of action a strategy for deciding empirically between competing theories of intention is exposed and applied for criticizing various philosophical theories of intention, among others that of Bratman. The hypothesis that intentions are optimality beliefs is defended on the basis of empirical decision theory. Present empirical decision theory however does not provide an empirically satisfying elaboration of the (...) desirability concepts used in these optimality beliefs. Based on process theories of deliberation two hypotheses for filling this gap are developed. (shrink)

Whether collective agency is a coherent concept depends on the theory of agency that we choose to adopt. We argue that the enactive theory of agency developed by Barandiaran, Di Paolo and Rohde (2009) provides a principled way of grounding agency in biological organisms. However the importance of biological embodiment for the enactive approach might lead one to be skeptical as to whether artificial systems or collectives of individuals could instantiate genuine agency. To explore this issue we contrast the concept (...) of collective agency with multi-agent systems and multi-system agents, and argue that genuinely collective agents instantiate agency at both the collective level and at the level of the component parts. Developing the enactive model, we propose understanding agency – both at the level of the individual and of the collective – as spectra that are constituted by dimensions that vary across time. Finally, we consider whether collectives that are not merely metaphorically ‘agents’ but rather are genuinely agentive also instantiate subjectivity at the collective level. We propose that investigations using the perceptual crossing paradigm suggest that a shared lived perspective can indeed emerge but this should not be conflated with a collective first-person perspective, for which material integration in a living body may be required. (shrink)

In this article we describe research methods that are used for the study of individual multiattribute evaluation processes. First we explain that a multiattribute evaluation problem involves the evaluation of a set of alternatives, described by their values on a number of alternatives. We discuss a number of evaluation strategies that may be applied to arrive at a conclusion about the attractiveness or suitability of the alternatives, and next introduce two main research paradigms in this area, structural modelling and process (...) tracing. We argue that the techniques developed within these paradigms all have their advantages and disadvantages, and conclude that the most promising technique to detect the true nature of the evaluation strategy used by a judge seems to be the analysis of verbal protocols. At the same time we think it is wise not to rely on just one technique, but to use a multimethod approach to the study of multiattribute evaluation processes whenever that is possible. (shrink)

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)

To nudge is to design choice contexts in order to improve choice outcomes. Richard Thaler and Cass Sunstein emphatically endorse nudging but reject more restrictive means. In contrast, I argue that the behavioral psychology that motivates nudging also motivates what may be called jolting — i.e. the design of choice content. I defend nudging and jolting by distinguishing them from the sometimes oppressive means with which they can be implemented, by responding to some common arguments against nudging, and by showing (...) how respect for preferences over option sets and their aggregate properties may require the trimming of option sets, as well as helpful choice contexts. (shrink)

Research on bounded rationality has two cultures, which I call ‘idealistic’ and ‘pragmatic’. Technically, the cultures differ on whether they build models based on normative axioms or empirical facts, assume that people's goal is to optimize or to satisfice, do not or do model psychological processes, let parameters vary freely or fix them, aim at explanation or prediction and test models from one or both cultures. Each culture tells a story about people's rationality. The story of the idealistic culture is (...) frustrating, with people in principle being able to know what they should do, but in practice systematically failing to do it. This story makes one hide in books for intellectual solace or surrender to the designs of someone smarter. The story of the pragmatic culture is empowering: If people are educated to use the right tool in the right situation, they do well. (shrink)

The standard economic choice model assumes that the decision maker chooses from sets of alternatives. In contrast, we analyze a choice model in which the decision maker encounters the alternatives in the form of a list. We present two axioms similar in nature to the classical axioms of choice from sets. We show that they characterize all the choice functions from lists that involve the choice of either the first or the last optimal alternative in the list according to some (...) preference relation. We then relate choice functions from lists to the classical notions of choice correspondences and random choice functions. (shrink)

We propose a neural model of multiattribute-decision processes, based on an attractor neural network with dynamic thresholds. The model may be viewed as a generalization of the elimination by aspects model, whereby simultaneous selection of several aspects is allowed. Depending on the amount of synaptic inhibition, various kinds of scanning strategies may be performed, leading in some cases to vacillations among the alternatives. The model predicts that decisions of a longer time duration exhibit a lower violation of the simple scalability (...) law, as opposed to shorter decisions. Furthermore, the model is suggested as a general attribute-based decision module. Accordingly, various decision strategies are manifested depending on the module's parameters. (shrink)

The notion of ecological rationality implies that the accuracy of a decision strategy depends on features of the information environment in which it is tested. We demonstrate that the performance of a group may be strongly affected by the decision strategies used by its individual members and specify how this effect is moderated by environmental features. Specifically, in a set of simulation studies, we systematically compared four decision strategies used by the individual group members: two linear, compensatory decision strategies and (...) two simple, noncompensatory heuristics. Individual decisions were aggregated by using a majority rule. To assess the ecological rationality of the strategies, we varied (a) the distribution of cue validities, (b) the quantity, and (c) the quality of shared information. Group performance strongly depended on the distribution of cue validities. When validities were linearly distributed, groups using a compensatory strategy achieved the highest accuracy. Conversely, when cue validities followed a J-shaped distribution, groups using a simple lexicographic heuristic performed best. While these effects were robust across different quantities of shared information, the quality of shared information exerted stronger effects on group performance. Consequences for prescriptive theories on group decision making are discussed. (shrink)

This thesis aims to develop a psychologically plausible account of concepts by integrating key insights from philosophy (on the metaphysical basis for concept possession) and psychology (on the mechanisms underlying concept acquisition). I adopt an approach known as informational atomism, developed by Jerry Fodor. Informational atomism is the conjunction of two theses: (i) informational semantics, according to which conceptual content is constituted exhaustively by nomological mind–world relations; and (ii) conceptual atomism, according to which (lexical) concepts have no internal structure. I (...) argue that informational semantics needs to be supplemented by allowing content-constitutive rules of inference (“meaning postulates”). This is because the content of one important class of concepts, the logical terms, is not plausibly informational. And since, it is argued, no principled distinction can be drawn between logical concepts and the rest, the problem that this raises is a general one. An immediate difficulty is that Quine’s classic arguments against the analytic/synthetic distinction suggest that there can be no principled basis for distinguishing content-constitutive rules from the rest. I show that this concern can be overcome by taking a psychological approach: there is a fact of the matter as to whether or not a particular inference is governed by a mentally-represented inference rule, albeit one that analytic philosophy does not have the resources to determine. I then consider the implications of this approach for concept acquisition. One mechanism underlying concept acquisition is the development of perceptual detectors for the objects that we encounter. I investigate how this might work, by drawing on recent ideas in ethology on ‘learning instincts’, and recent insights into the neurological basis for perceptual learning. What emerges is a view of concept acquisition as involving a complex interplay between innate constraints and environmental input. This supports Fodor’s recent move away from radical concept nativism: concept acquisition requires innate mechanisms, but does not require that concepts themselves be innate. (shrink)

This research examines the moderating role of regret aversion in reason-based choice. Earlier research has shown that regret aversion and reason-based choice effects are linked through a common emphasis on decision justification, and that a simple manipulation of regret salience can eliminate the decoy effect, a well-known reason-based choice effect. We show here that the effect of regret salience varies in theory-relevant ways from one reason-based choice effect to another. For effects such as the select/reject and decoy effect, both of (...) which were independently judged to be unreasonable bases for deciding, regret salience eliminated the effect. For the most-important attribute effect that is judged to be normatively acceptable, however, regret salience amplified the effect. Anticipated self-blame regret and perceived decision justifiability consistently predicted preferences and thus offer a parsimonious account of both attenuation and amplification of these reason-based choice effects. (shrink)

When economists perform experiments, they do so typically in one of two traditions: cognitive psychology experiments in the heuristics and biases tradition (H&B-experiments) and experimental economics in the tradition of Vernon Smith. What sets these two traditions apart? In this paper, I offer a novel conceptualization of their pervasive disagreements. Focusing on how each camp approaches preferences, one of the most fundamental concepts in economics, I argue that experimental economics can be reconstructed as holding that the constituents of preferences can (...) be partially located in agents’ environments, while H&B-experiments implicitly assume that the constituents of preferences are entirely located within agents’ bodies. The paper (i) outlines how my reconstruction can account for the disagreement between the two paradigms, (ii) defends the plausibility of this reconstruction, and (iii) highlights its implications for the debate about the nature of preferences in economics. (shrink)

When people must either save a greater number of people from a smaller harm or a smaller number from a greater harm, do their choices reflect a reasonable moral outlook? We pursue this question with the help of an experiment. In our experiment, two-fifths of subjects employ a similarity heuristic. When alternatives appear dissimilar in terms of the number saved but similar in terms of the magnitude of harm prevented, this heuristic mandates saving the greater number. In our experiment, this (...) leads to choices that are inconsistent with all standard theories of justice. We argue that this demonstrates the untrustworthiness of distributive judgments in cases that elicit similarity-based choice. (shrink)

Classical (Bayesian) probability (CP) theory has led to an influential research tradition for modeling cognitive processes. Cognitive scientists have been trained to work with CP principles for so long that it is hard even to imagine alternative ways to formalize probabilities. However, in physics, quantum probability (QP) theory has been the dominant probabilistic approach for nearly 100 years. Could QP theory provide us with any advantages in cognitive modeling as well? Note first that both CP and QP theory share the (...) fundamental assumption that it is possible to model cognition on the basis of formal, probabilistic principles. But why consider a QP approach? The answers are that (1) there are many well-established empirical findings (e.g., from the influential Tversky, Kahneman research tradition) that are hard to reconcile with CP principles; and (2) these same findings have natural and straightforward explanations with quantum principles. In QP theory, probabilistic assessment is often strongly context- and order-dependent, individual states can be superposition states (that are impossible to associate with specific values), and composite systems can be entangled (they cannot be decomposed into their subsystems). All these characteristics appear perplexing from a classical perspective. However, our thesis is that they provide a more accurate and powerful account of certain cognitive processes. We first introduce QP theory and illustrate its application with psychological examples. We then review empirical findings that motivate the use of quantum theory in cognitive theory, but also discuss ways in which QP and CP theories converge. Finally, we consider the implications of a QP theory approach to cognition for human rationality. (shrink)

In both theoretical and applied modeling in behavioral sciences, it is common to choose a mathematical specification of functional form and distribution of unobservables on grounds of analytic convenience without support from explicit theoretical postulates. This article discusses the issue of deriving particular qualitative hypotheses about functional form restrictions in structural models from intuitive theoretical axioms. In particular, we focus on a family of postulates known as dimensional invariance. Subsequently, we discuss how specific qualitative postulates can be reformulated so as (...) to allow for conventional statistical hypothesis testing, and we also derive details of a particular likelihood ratio test procedure. An empirical application of the testing procedure is carried out, based on data from a Stated Preference survey. (shrink)

The paper shows why and how an empirical study of fast-and-frugal heuristics can provide norms of good reasoning, and thus how (and how far) rationality can be naturalized. We explain the heuristics that humans often rely on in solving problems, for example, choosing investment strategies or apartments, placing bets in sports, or making library searches. We then show that heuristics can lead to judgments that are as accurate as or even more accurate than strategies that use more information and computation, (...) including optimization methods. A standard way to defend the use of heuristics is by reference to accuracy-effort trade-offs. We take a different route, emphasizing ecological rationality (the relationship between cognitive heuristics and environment), and argue that in uncertain environments, more information and computation are not always better (the “less-can-be-more” doctrine). The resulting naturalism about rationality is thus normative because it not only describes what heuristics people use, but also in which specific environments one should rely on a heuristic in order to make better inferences. While we desist from claiming that the scope of ecological rationality is unlimited, we think it is of wide practical use. (shrink)

Recent debates on the nature of preferences in economics have typically assumed that they are to be interpreted either as behavioural regularities or as mental states. In this paper I challenge this dichotomy and argue that neither interpretation is consistent with scientific practice in choice theory and behavioural economics. Preferences are belief-dependent dispositions with a multiply realizable causal basis, which explains why economists are reluctant to make a commitment about their interpretation.

Topics in Cognitive Science, Volume 14, Issue 3, Page 621-633, July 2022.

The first goal of this study was to validate the Rational-Experiential Inventory (REI) and the Cognitive Reflection Test (CRT) through checking their relation to the transitivity axiom. The second goal was to test the relation between decision strategies and cognitive style as well as the relation between decision strategies and the transitivity of preferences. The following characteristics of strategies were investigated: requirements for trade-offs, maximization vs. satisficing and option-wise vs. attribute-wise information processing. Respondents were given choices between two multi-attribute options. (...) The options were designed so that the choice indicated which strategy was applied. Both the REI-R and the CRT were found to be good predictors of the transitivity of preferences. Respondents who applied compensatory strategies and the maximization criterion scored highly on the REI-R and in the CRT, whereas those who applied the satisficing rule scored highly on the REI-R but not in the CRT. Attribute-wise information processing was related to low scores in both measurements. Option-wise information processing led to a high transitivity of preferences. (shrink)

Behavioral economics focuses mainly on how limitations of the human cognitive apparatus, risk attitudes, and human sociality affect decision making. The former two lead to deviations from rationality standards, the latter to deviations from rational self-interest. Some of these research interests are also shared by evolutionary psychology which, however, explains the observed deviations by features of the human genetic endowment conjectured to have evolved under fierce selection pressure in early human phylogeny. Important as the decision-making theoretical perspective of the two (...) disciplines is, it will be claimed to be too narrow to fully account for what an evolutionary approach has to say about economic behavior. This is particularly true regarding the questions of what choices are made and what causes them, i.e., the motivational aspects of behavior. In the language of economics this points to the agents’ preferences. This article discusses how preferences relate to the human genetic endowment, how they can change over time, and what conclusions have to be drawn from extending the analysis to the motivational side. (shrink)

One of the interesting research questions in multi-attribute decision-making is what affects the consideration of shared information between two alternatives. Previous studies have suggested two approaches in finding what characteristics of common features affect their consideration. Two bottom-up factors were found, but no top-down factors were discovered. In the current study, we followed the top-down approach and investigated how subjective importance of a common feature affects its consideration. In two studies, we consistently found that, on both the general and individual (...) level, the level of consideration increased with the SI of the common feature. This result provided a new explanation for the effect of common feature consideration and its individual difference; it also provided insights in explaining the underlying process of multi-attribute decision making. (shrink)