Realizing the ideal of democracy requires political inclusion for citizens. A legitimate democracy must give citizens the opportunity to express their attitudes about the relative attractions of different policies, and access to political mechanisms through which they can be counted and heard. Actual governance often aims not at accurate belief, but at nonepistemic factors like achieving and maintaining institutional stability, creating the feeling of government legitimacy among citizens, or managing access to influence on policy decision-making. I examine the traditional relationship (...) between inclusiveness and accuracy, and illustrate this connection by discussing empirical work on how group decision-making can improve accuracy. I also advance a Generic Epistemic Principle that any evidence-based decision-making procedures must embrace. Focusing on policy-making, I then measure the distance between these standards and the ones actually implemented in U.S. political settings. Psychological research on individual and group decision-making is a source of normative assessment for existing policy judgment, but it neither rationalizes nor legitimates the actual and typical processes used in U.S. institutions of political decision making. To establish this point, I focus on one characteristic government institution—the U.S. House of Representatives Committee on Science, Space, and Technology—that displays deliberative processes at odds with the sciences they advocate, and with the Generic Epistemic Principle. I explain this discouraging condition in terms of several inveterate factors in U.S. politics: a limitlessly money-driven and endless campaigning process that effectively forces elected representatives to align themselves with money and vote strategically, the use of procedural arrangements known to make people feel politically included when they are not, and the unresponsiveness of a majoritarian (vs. consensus) democracy. (shrink)

Inquiry, Volume 57, Issue 1, Page 55-96, February 2014.

Michael Huemer () argues that following the epistemic strategy of Critical Thinking—that is, thinking things through for oneself—leaves the agent epistemically either worse off or no better off than an alternative strategy of Credulity—that is, trusting the authorities. Therefore, Critical Thinking is not epistemically responsible. This article argues that Reasonable Credulity entails Critical Thinking, and since Reasonable Credulity is epistemically responsible, the Critical Thinking that it entails is epistemically responsible too.

In “The Pecking Order,” Dalton Conley argues that inequalities between siblings are larger than inequalities at the level of the overall society. Our article discusses the normative implications for institutions of this observation. We show that the question of state intervention for curbing intra-family inequality reveals an internal tension within liberalism between autonomy and toleration, which bears on the forms that the intervention of institutions may take. Despite the pros and cons of both commitments, autonomy-based liberalism appears more compatible with (...) the involvement of the state for egalitarian reasons within the family than toleration-based liberalism.Export citation Request permission. (shrink)

Intelligence can be understood as a form of rationality, in the sense that an intelligent system does its best when its knowledge and resources are insufficient with respect to the problems to be solved. The traditional models of rationality typically assume some form of sufficiency of knowledge and resources, so cannot solve many theoretical and practical problems in Artificial Intelligence (AI). New models based on the Assumption of Insufficient Knowledge and Resources (AIKR) cannot be obtained by minor revisions or extensions (...) of the traditional models, and have to be established fully according to the restrictions and freedoms provided by AIKR. The practice of NARS, an AI project, shows that such new models are feasible and promising in providing a new theoretical foundation for the study of rationality, intelligence, consciousness, and mind. (shrink)

For many years a debate has raged over what constitutes futile medical care, if patients have a right to demand what doctors label as futile, and whether physicians should be obliged to provide treatments that they think are inappropriate. More recently, the argument has shifted away from the difficult project of definitions, to outlining institutional policies and procedures that take a measured and patient-by-patient approach to deciding if an existing or desired intervention is futile. The prototype is the Texas Advance (...) Directives Act, but similar procedures have been widely implemented both with and without the protection of the law. While this method has much to recommend it, there are inherent moral flaws that have not received as much discussion as warranted. Because these strategies adopt a semblance of procedural justice, it is assumed that the outcomes of such proceedings will be both correct and fair. In this paper, I argue that there are three main irremediable defects in the policy approach: there is the potential for arbitrary decision-making about futility in specific cases; there are structural, pre-ordained consequences for ethnic minorities who would be disproportionately affected by the use of these procedures; and the use of rationing justifications to support the use of these policies. These flaws detract so much from any benefit that could be derived that they make such strategies more harmful than helpful. (shrink)

In this paper I discuss the kinds of idealisations invoked in normative theories—logic, epistemology, and decision theory. I argue that very often the so-called norms of rationality are in fact mere idealisations invoked to make life easier. As such, these idealisations are not too different from various idealisations employed in scientific modelling. Examples of the latter include: fluids are incompressible (in fluid mechanics), growth rates are constant (in population ecology), and the gravitational influence of distant bodies can be ignored (in (...) celestial mechanics). Thinking of logic, epistemology, and decision theory as normative models employing various idealisations of these kinds, changes the way we approach the justification of the models in question. (shrink)

As part of the rationality debate, we examine the impact of deliberative and intuitive thinking styles on diversity preference behavior. A sample of 230 students completed the Rational Experiential Inventory and the Diversity Preference Questionnaire, an original measure of diversification behavior in different real-life situations. In cases where no normative solution was available, we found a clear preference for diversity-seeking in the gain domain and diversity-aversion in the loss domain, regardless of cognitive thinking style. However, in cases where one alternative (...) normatively dominated the other, participants high in deliberative thinking style were more calibrated to normative behavior, regardless of whether their intuitive tendency preference and the normative solution were contradictory or pointed in the same direction. Our findings support a model in which deliberative but not intuitive thinking style is the crucial predictor of rational behavior, since it enables people to better adjust their intuitive preference anchor when normative considerations require doing so. (shrink)

Epistemologists and philosophers of mind both ask questions about belief. Epistemologists ask normative questions about belief—which beliefs ought we to have? Philosophers of mind ask metaphysical questions about belief—what are beliefs, and what does it take to have them? While these issues might seem independent of one another, there is potential for an interesting sort of conflict: the epistemologist might think we ought to have beliefs that, according to the philosopher of mind, it is impossible to have. This essay argues (...) that this conflict does arise and that it creates problems for traditional skeptical views in epistemology. In particular, it argues that on certain popular views about the nature of belief, it is impossible to adopt the near-global agnosticism recommended by the skeptical epistemologist. On other plausible views, it is possible only in special circumstances, and this limitation undermines skeptical epistemological claims. The only views about the nature of belief on which there are no metaphysical hurdles to adopting the agnosticism recommended by the skeptic are views that face powerful objections—objections that are completely independent of antiskeptical epistemological considerations. (shrink)

Skepticism about the epistemic value of intuition in theoretical and philosophical inquiry has recently been bolstered by empirical research suggesting that people’s concrete-case intuitions are vulnerable to irrational biases (e.g., the order effect). What is more, skeptics argue that we have no way to ‘‘calibrate” our intuitions against these biases and no way of anticipating intuitional instability. This paper challenges the skeptical position, introducing data from two studies that suggest not only that people’s concrete-case intuitions are often stable, but also (...) that people have introspective awareness of this stability, providing a promising means by which to assess the epistemic value of our intuitions. (shrink)

There is no strong reason to believe that human-level intelligence represents an upper limit of the capacity of artificial intelligence, should it be realized. This poses serious safety issues, since a superintelligent system would have great power to direct the future according to its possibly flawed motivation system. Solving this issue in general has proven to be considerably harder than expected. This paper looks at one particular approach, Oracle AI. An Oracle AI is an AI that does not act in (...) the world except by answering questions. Even this narrow approach presents considerable challenges. In this paper, we analyse and critique various methods of controlling the AI. In general an Oracle AI might be safer than unrestricted AI, but still remains potentially dangerous. (shrink)

Models in decision theory and game theory assume that preferences are determinate: for any pair of possible outcomes, a and b, an agent either prefers a to b, prefers b to a, or is indifferent as between a and b. Preferences are also assumed to be stable: provided the agent is fully informed, trivial situational influences will not shift the order of her preferences. Research by behavioral economists suggests, however, that economic and hedonic preferences are to some degree indeterminate and (...) unstable, which in turn suggests that other sorts of preferences may suffer the same problem. Even fully informed agents do not always determinately prefer a to b, prefer b to a, or feel indifferent as between a and b. Seemingly trivial situational influences rearrange the order of their preferences. One could respond that decision theory and game theory are not meant to describe actual behavior, and that they instead adumbrate an ideal of rationality from which human action diverges in various ways. When the divergences are small and systematic, they help us identify the heuristics that conspire to help people approximate rationality. One such heuristic, dubbed the Wilde heuristic, is explored. However, the divergences documented by behavioral economists threaten to be too large to handle through idealization. The Rum Tum Tugger Model, in which indifference is intransitive, is spelled out as one promising way for decision and game theory to retrench. Preferences may be locally unstable and indeterminate, but when the differences between options are sufficiently large, they approximate stability and determinacy. (shrink)

In some practical uncertain situations decision makers are presented with described events that are out of sequence when having to make a causal attribution. A theoretical perspective concerning the causal coherence of the explanation is developed to predict the effect of this on causal attribution. Three experiments investigated the effect on causal judgement when the described order of events did not correspond to their causal order. Participants had to judge the relative probability of two possible causes of an outcome in (...) scenarios in which presentation order varied. All three experiments found that there was a preference to judge that the cause associated with events described in causal order was more responsible for the outcome when events associated with one cause were interleaved in their presentation order with those from a second cause. This occurred when there was a strong causal relationship between events. The results were consistent with the causal coherence explanation. (shrink)

Organizational leaders face environmental challenges and pressures that put them under ethical risk. Navigating this ethical risk is demanding given the dynamics of contemporary organizations. Traditional models of ethical decision-making (EDM) are an inadequate framework for understanding how leaders respond to ethical dilemmas under conditions of uncertainty and equivocality. Sensemaking models more accurately illustrate leader EDM and account for individual, social, and environmental constraints. Using the sensemaking approach as a foundation, previous EDM models are revised and extended to comprise a (...) conceptual model of leader EDM. Moreover, the underlying factors in the model are highlighted—constraints and strategies. Four trainable, compensatory strategies (emotion regulation, self-reflection, forecasting, and information integration) are proposed and described that aid leaders in navigating ethical dilemmas in organizations. Empirical examinations demonstrate that tactical application of the strategies may aid leaders in making sense of complex and ambiguous ethical dilemmas and promote ethical behavior. Compensatory tactics such as these should be central to organizational ethics initiatives at the leader level. (shrink)

Several psychological experiments have suggested that concepts can influence perceived color (e.g., Delk and Fillenbaum in Am J Psychol 78(2):290–293, 1965, Hansen et al. in Nat Neurosci 9(11):1367–1368, 2006, Olkkonen et al. in J Vis 8(5):1–16, 2008). Observers tend to assign typical colors to objects even when the objects do not have those colors. Recently, these findings were used to argue that perceptual experience is cognitively penetrable (Macpherson 2012). This interpretation of the experiments has far-reaching consequences: it implies that the (...) way we think of objects determines how we see them, thus threatening the role of perception in justifying beliefs. In this paper, I show that the psychological findings can be accounted for without admitting cognitive penetrability. An underestimated but key feature of the experiments is that observers had to judge colors in borderline cases, in conditions of reduced acuity, or on the basis of color-concepts instead of matching. Such judgments are sensitive to the form of bias that Tversky and Kahneman (Science 185:1124–1131, 1974) have termed ‘anchoring’. Adopting a suggestion from Raffman (Philos Rev 103(1):41–74, 1994), I argue that the way subjects in the experiments think of the objects could affect their color judgments without altering their color experiences. (shrink)

This article documents two facts that are provocative in juxtaposition. First: There is multidecade durability of theory controversies in psychology, demonstrated here in the subdisciplines of cognitive and social psychology. Second: There is a much greater frequency of Nobel science awards for contributions to method than for contributions to theory, shown here in an analysis of the last two decades of Nobel awards in physics, chemistry, and medicine. The available documentation of Nobel awards reveals two forms of method–theory synergy: (a) (...) existing theories were often essential in enabling development of awarded methods, and (b) award-receiving methods often generated previously inconceivable data, which in turn inspired previously inconceivable theories. It is easy to find illustrations of these same synergies also in psychology. Perhaps greater recognition of the value of method in advancing theory can help to achieve resolutions of psychology’s persistent theory controversies. (shrink)

Ignorance has been both vilified and celebrated throughout the ages. However, the social sciences have had little to say about this topic over the years. In this paper, we argue that in an age of competing and contrasting worldviews, scholarly attention to ignorance can shed light on interpersonal processes and relational dynamics that occur in encounters between subjects holding different points of view. We discuss data from two studies documenting an attribution of ignorance in social relations that serves to relegate (...) the other's point of view to one that stands in need of education or correction. We argue that this communicative strategy enacts a semantic barrier that serves to retain the interlocutor's original point of view unscathed and unchallenged. We argue that this limits dialogical relations by eliminating the requirement for perspective-taking in social dialogue. (shrink)

This article introduces the topic ‘‘Production of Referring Expressions: Bridging the Gap between Computational and Empirical Approaches to Reference’’ of the journal Topics in Cognitive Science. We argue that computational and psycholinguistic approaches to reference production can benefit from closer interaction, and that this is likely to result in the construction of algorithms that differ markedly from the ones currently known in the computational literature. We focus particularly on determinism, the feature of existing algorithms that is perhaps most clearly at (...) odds with psycholinguistic results, discussing how future algorithms might include non-determinism, and how new psycholinguistic experiments could inform the development of such algorithms. (shrink)

Balance and common sense are commonplace concepts used to bring an audience to a place of shared understanding. These commonplaces also function as decision-making heuristics. I argue in this paper that the commonplaces ?balance? and ?common sense? are problematic because they suggest decision-making strategies that strip associated information of complexity and value. Through an examination of theory and responses to interviews conducted in relation to an ongoing project on environmental rhetoric, I problematize these concepts and consider how awareness of the (...) interaction of these commonplaces and heuristics can benefit rhetors and agencies seeking environmental change. (shrink)

ABSTRACT Twenty years ago Leif Lewin made the case that altruistic motives are more common than selfish motives among voters, politicians, and bureaucrats. We propose that motives and beliefs emerge as reactions to immediate feedback from technical-causal, material-economic, and moral-social aspects of the political task environment. In the absence of certain kinds of technical-causal and material-economic feedback, moral-social feedback leads individuals to the altruism Lewin documents, but also to righteousness (moralized regard for the in-group and disregard for the out-group) and (...) myopia (disregard for distant consequences). The mix of altruism, righteousness, and myopia increases the focus on winning the next high-stakes election rather than on discovering or enforcing socially productive institutions. (shrink)

Many critics of dual-process models have mistaken long lists of descriptive terms in the literature for a full-blown theory of necessarily co-occurring properties. These critiques have distracted attention from the cumulative progress being made in identifying the much smaller set of properties that truly do define Type 1 and Type 2 processing. Our view of the literature is that autonomous processing is the defining feature of Type 1 processing. Even more convincing is the converging evidence that the key feature of (...) Type 2 processing is the ability to sustain the decoupling of secondary representations. The latter is a foundational cognitive requirement for hypothetical thinking. (shrink)

A common view in philosophy is that the way human beings reason is not only gradually better, but that our way of reasoning is fundamentally distinctive. Findings in the psychology of reasoning challenge the traditional view according to which human beings reason in accordance with the laws of logic and probability theory, but rather suggest that human reasoning consists in the application of domain specific rules of thumb similar to those that we ascribe to some intelligent non-human animals as well. (...) However, this view on human reasoning is unable to explain human accomplishments like technological innovations or scientific progress. David Papineau offers a theory of human theoretical rationality that is consistent with the psychological view on human reasoning but that can also explain how humans sometimes are able to transcend the limitations of their biologically quick and dirty modes of thought and thereby reach a high level of accuracy. Papineau claims that the abilities that constitute theoretical rationality are unique to the human species and thus, that human reasoning is fundamentally distinctive after all. In this paper I am going to discuss to what extent these abilities in fact are unique to our species and whether this theoretical rationality can be called an anthropological difference. (shrink)

Set-valued choice functions provide a framework that is general enough to encompass a wide variety of theories that are significant to the study of rationality but, at the same time, offer enough structure to articulate consistency conditions that can be used to characterize some of the theories within this encompassed variety. Nonetheless, two-tiered choice functions, such as those advocated by Isaac Levi, are not easily characterized within the framework of set-valued choice functions. The present work proposes conditional choice functions as (...) the proper carriers of synchronic rationality. The resulting framework generalizes the familiar one mentioned above without emptying it and, moreover, provides a natural setting for two-tiered choice rules. (shrink)

Inductive generalization, where people go beyond the data provided, is a basic cognitive capability, and it underpins theoretical accounts of learning, categorization, and decision making. To complete the inductive leap needed for generalization, people must make a key ‘‘sampling’’ assumption about how the available data were generated. Previous models have considered two extreme possibilities, known as strong and weak sampling. In strong sampling, data are assumed to have been deliberately generated as positive examples of a concept, whereas in weak sampling, (...) data are assumed to have been generated without any restrictions. We develop a more general account of sampling that allows for an intermediate mixture of these two extremes, and we test its usefulness. In two experiments, we show that most people complete simple one-dimensional generalization tasks in a way that is consistent with their believing in some mixture of strong and weak sampling, but that there are large individual differences in the relative emphasis different people give to each type of sampling. We also show experimentally that the relative emphasis of the mixture is influenced by the structure of the available information. We discuss the psychological meaning of mixing strong and weak sampling, and possible extensions of our modeling approach to richer problems of inductive generalization. (shrink)

Reliabilism is invoked by a standard causal response to the slow switching argument for incompatibilism about mental content externalism and privileged access. Though the response in question is negative, in that it only establishes that, given such an epistemology, externalism does not rule privileged access out, the appeal to reliabilism involves an assumption about the reliability of introspection, an assumption that in turn grounds a simple argument for the positive conclusion that reliabilism itself implies privileged access. This paper offers a (...) two-part defense of that conclusion: the reliabilist account of privileged access is defended both againstarguments in favor of the rival content inheritance strategy and against an argument turning on empirical considerations concerning the individuation of the belief-producing process of introspection. (shrink)

What are the consequences of evolutionary theory for the epistemic standing of our beliefs? Evolutionary considerations can be used to either justify or debunk a variety of beliefs. This paper argues that evolutionary approaches to human cognition must at least allow for approximately reliable cognitive capacities. Approaches that portray human cognition as so deeply biased and deficient that no knowledge is possible are internally incoherent and self-defeating. As evolutionary theory offers the current best hope for a naturalistic epistemology, evolutionary approaches (...) to epistemic justification seem to be committed to the view that our sensory systems and belief-formation processes are at least approximately accurate. However, for that reason they are vulnerable to the charge of circularity, and their success seems to be limited to commonsense beliefs. This paper offers an extension of evolutionary arguments by considering the use of external media in human cognitive processes: we suggest that the way humans supplement their evolved cognitive capacities with external tools may provide an effective way to increase the reliability of their beliefs and to counter evolved cognitive biases. (shrink)

This paper surveys the current philosophical discussion of the ethics of risk imposition, placing it in the context of relevant work in psychology, economics and social theory. The central philosophical problem starts from the observation that it is not practically possible to assign people individual rights not to be exposed to risk, as virtually all activity imposes some risk on others. This is the ‘problem of paralysis’. However, the obvious alternative theory that exposure to risk is justified when its total (...) benefits exceed its total costs faces the standard distributional challenges of consequentialism. Forms of contractualism have been proposed as a solution, but how exactly such theories can be formulated remains problematic, especially when confronted with the difficult cases of mass, novel, risk such as climate change. (shrink)

This work consists of two parts. Part I will be a contribution to a philo- sophical discussion of the nature of causal explanation. It will present my contrastive counterfactual theory of causal explanation and show how it can be used to deal with a number of problems facing theories of causal explanation. Part II is a contribution to a discussion of the na- ture of interest explanation in social studies of science. The aim is to help to resolve some controversies (...) concerning interest explanation by explicating the concept of interest and its explanatory uses by using the account of explanation developed in Part I. (shrink)

Abstract How do people find arguments while engaged in a discussion? Following an analogy with visual search, a mechanism that performs this task is described. It is a metarepresentational device that examines representations in a mostly serial manner until it finds a good enough argument supporting one’s position. It is argued that the mechanism described in dual process theories as ‘system 2’, or analytic reasoning fulfills these requirements. This provides support for the hypothesis that reasoning serves an argumentative function. Content (...) Type Journal Article Pages 1-20 DOI 10.1007/s10503-011-9256-1 Authors Hugo Mercier, Philosophy, Politics and Economics Program, University of Pennsylvania, 313 Cohen Hall, 249 South 36th Street, Philadelphia, PA 19104, USA Journal Argumentation Online ISSN 1572-8374 Print ISSN 0920-427X. (shrink)

Economic theory reduces the concept of rationality to internal consistency. As far as beliefs are concerned, rationality is equated with having a prior belief over a “Grand State Space”, describing all possible sources of uncertainties. We argue that this notion is too weak in some senses and too strong in others. It is too weak because it does not distinguish between rational and irrational beliefs. Relatedly, the Bayesian approach, when applied to the Grand State Space, is inherently incapable of describing (...) the formation of prior beliefs. On the other hand, this notion of rationality is too strong because there are many situations in which there is not sufficient information for an individual to generate a Bayesian prior. It follows that the Bayesian approach is neither sufficient not necessary for the rationality of beliefs. (shrink)

According to the principles derived from his theory of discourse ethics, Habermas's model of deliberative democracy is justified only if the public is capable of making political decisions that advance the common good. Recent public‐opinion research demonstrates that the public's overwhelming ignorance of politics precludes it from having such capabilities, even if radical measures were taken to thoroughly educate the public about politics or to increase the salience of politics in their lives.

Piéron's Law describes the relationship between stimulus intensity and reaction time. Previously (Stafford & Gurney, 2004), we have shown that Piéron's Law is a necessary consequence of rise-to-threshold decision making and thus will arise from optimal simple decision-making algorithms (e.g., Bogacz, Brown, Moehlis, Holmes, & Cohen, 2006). Here, we manipulate the color saturation of a Stroop stimulus. Our results show that Piéron's Law holds for color intensity and color-naming reaction time, extending the domain of this law, in line with our (...) suggestion of the generality of the processes that can give rise to Piéron's Law. In addition, we find that Stroop condition does not interact with the effect of color saturation; Stroop interference and facilitation remain constant at all levels of color saturation. An analysis demonstrates that this result cannot be accounted for by single-stage decision-making algorithms which combine all the evidence pertaining to a decision into a common metric. This shows that human decision making is not information-optimal and suggests that the generalization of current models of simple perceptual decision making to more complex decisions is not straightforward. (shrink)

Does conscious reflection lead to good decision-making? Whereas engaging in reflection is traditionally thought to be the best way to make wise choices, recent psychological evidence undermines the role of reflection in lay and expert judgement. The literature suggests that thinking about reasons does not improve the choices people make, and that experts do not engage in reflection, but base their judgements on intuition, often shaped by extensive previous experience. Can we square the traditional accounts of wisdom with the results (...) of these empirical studies? Should we even attempt to? I shall defend the view that philosophy and cognitive sciences genuinely interact in tackling questions such as whether reflection leads to making wise choices. (shrink)

Extensive discussions of practical wisdom are relatively rare in the philosophical literature these days. This is strange given the theoretical and practical importance of wisdom and, indeed, the etymology of the word "philosophy." In this paper, we remedy this inattention by proposing a methodology for developing a theory of wisdom and using this methodology to outline a viable theory. The methodology we favor is a version of wide reflective equilibrium. We begin with psychological research on folk intuitions about wisdom, which (...) helps us to avoid problems caused by reliance on the possibly idiosyncratic intuitions of professional philosophers. The folk theory is then elaborated in light of theoretical desiderata and further empirical research on human cognitive capacities. The resulting view emphasizes policies that the wise person adopts in order to cope with the many obstacles to making good choices. (shrink)

Stakeholder theorists distinguish between normative stakeholders, those who gain moral standing by making contributions to the firm, and derivative stakeholders, those who can constrain the corporate association even though they make no contribution. The board of directors has the legal authority to distinguish among these stakeholder groups and to distribute rights and obligations among these stakeholder groups. To be sure, this stakeholder formulation appropriately seizes on the firm’s voluntary, associative character. Yet, the firm’s constituents contribute assets and incur risks to (...) participate in market, economic activities. And, as such, the firm’s “stakeholders” must share an imperfect language to assist in making two key economic decisions: (1) who are the legitimate and who are the derivative stakeholders; and (2) who should sit on the board? Still, stakeholder theorists have good reason to be skeptical of neoclassical economics. Its assumptions that all act opportunistically and that all can calculate rationally and fully hardly correspond to studies on the managerial experience of corporate coordination. However, advances in behavioral law and economics now provide a cogent economic logic that readily fits into a stakeholder mode. In brief, we argue that (1) the firm’s economic purpose designates legitimacy to core stakeholders, to those who add value, assume unique risk, and can incur harm; (2) the board serves as the principal who coordinates these core stakeholders to sustain competitive advantage and new wealth creation; and (3) state incorporation law, Delaware in particular, reinforces the board’s function. These, in turn, supply selection criteria for board membership. We aim to synchronize concepts from behavioral law and economics with stakeholder theory. (shrink)

Perceivers generally show a poor ability to detect changes, a condition referred to as “Change Blindness” . They are, in addition, “blind to their own blindness”. A common explanation of this “Change Blindness Blindness” is that it derives from an inadequate, “photographical” folk-theory about perception. This explanation, however, does not account for intra-individual variations of CBB across trials. Our study aims to explore an alternative theory, according to which participants base their self-evaluations on two activity-dependent cues, namely search time and (...) perceived success in prior trials. These cues were found to influence self-evaluation in two orthogonal ways: success-feedback influenced self-evaluation in a global, contextual way, presumably by recalibrating the norm of adequacy for the task. Search time influenced it in a local way, predicting the success of a given trial from its duration. (shrink)

Of the many ethical corporate marketing practices, many firms use corporate social responsibility (CSR) communication to enhance their corporate image. Yet, consumers, overwhelmed by these more or less well-founded CSR claims, often have trouble identifying truly responsible firms. This confusion encourages ‘greenwashing’ and may make CSR initiatives less effective. On the basis of attribution theory, this study investigates the role of independent sustainability ratings on consumers’ responses to companies’ CSR communication. Experimental results indicate the negative effect of a poor sustainability (...) rating for corporate brand evaluations in the case of CSR communication, because consumers infer less intrinsic motives by the brand. Sustainability ratings thus could act to deter ‘greenwashing’ and encourage virtuous firms to persevere in their CSR practices. (shrink)

This article concerns the prescriptive function of decision analysis. Consider an agent who must choose an action yielding welfare that varies with an unknown state of nature. It is often asserted that such an agent should adhere to consistency axioms which imply that behavior can be represented as maximization of expected utility. However, our agent is not concerned the consistency of his behavior across hypothetical choice sets. He only wants to make a reasonable choice from the choice set that he (...) actually faces. Hence, I reason that prescriptions for decision making should respect actuality. That is, they should promote welfare maximization in the choice problem the agent actually faces. Any choice respecting weak and stochastic dominance is rational from the actualist perspective. (shrink)

An unprocessed risk is a collection of simple lotteries with a reduction-rule that describes the actual-payoff to the decision-maker as a function of realized lottery outcomes. Experiments reveal that the willingness to pay for unprocessed risks is consistently biased toward the payoff-level in the unprocessed representation. The anchoring-to-frame bias in cases of positive framing is significantly weaker than in cases of negative framing suggesting that rational negativity bias may reflect in asymmetric violations of rationality.

According to some theories of interpretation, it is difficult to explain and predict irrational behavior in intentional terms because irrational behavior does not support the ascription of intentional states with determinate content. In this paper I challenge this claim by offering a general diagnosis of those cases in which behavior, rational or not, resists interpretation. I argue that indeterminacy of ascription and paralysis of interpretation ensue when the interpreter lacks relevant information about the system to be interpreted and about the (...) environment in which the system is embedded. Moreover, the heuristics of interpretation that guide the ascription of beliefs can be limited in scope. In the end I suggest that by giving up the idea of a necessary rationality constraint on the ascription of intentional states we can develop a new framework for a more psychologically realistic account of interpretation. (shrink)

The aim of this article is to demonstrate the ways in which the past matters for ethnic conflict in the present. More specifically, by presenting a sociocognitive approach to the problem, this article sets out to specify macro-micro bridging mechanisms that explain why a history of prior conflict is likely to increase the likelihood that new conflicts will erupt. People's inclination toward simplified and/or invalid inductive reasoning in the form of analogism, and their innate disposition for ordering events in teleological (...) narratives--to which causality is typically attributed--will be of particular interest for this article. The article will also emphasize the ways in which collective memory sites become activated in such belief formation processes. For instance, the memory biases inherent in analogical reasoning often lead people to overestimate the likelihood of future conflict, which may lead them to mobilize in order to defend themselves, and/or to take preemptive action in ways that foment conflict. (shrink)

Serial reciprocity exists when people reciprocate for what they have received--for example, from a parent, a friend, a mentor, a stranger, a previous generation --by providing something to a third party, regardless of whether a return is also given to, or makes its way back to, the original giver. To understand serial reciprocity as reciprocity, this article delineates the general features of the serial type of reciprocity and outlines two general situations in which serial reciprocity provides a viable option --the (...) only or the most appropriate option --for reciprocal return. It also argues for a more fundamental rethinking of reciprocity in general. A more cognitive and cultural perspective on reciprocity is proposed that focuses on the meaning of exchanges and treats reciprocity as a socially constructed element of a culturally available repertoire. This can better account for the existing serial type of reciprocity. The article concludes with suggestions for empirical research. (shrink)