A large body of research in cognitive psychology and neuroscience draws on Bayesian statistics to model information processing within the brain. Many theorists have noted that this research seems to be in tension with a large body of experimental results purportedly documenting systematic deviations from Bayesian updating in human belief formation. In response, proponents of the Bayesian brain hypothesis contend that Bayesian models can accommodate such results by making suitable assumptions about model parameters. To make progress in this debate, I (...) argue that it is fruitful to focus not on specific experimental results but rather on what I call the ‘sources of epistemic irrationality’ in human cognition. I identify four such sources and I explore whether and, if so, how Bayesian models can be reconciled with them: processing costs, evolutionary suboptimality, motivated cognition, and error management. 1 Introduction 2 The Bayesian Brain 3 The Problem of Epistemic Irrationality 3.1 Bayesian inference and rationality 3.2 Intuitive Bayesian inference 4 Sources of Epistemic Irrationality 4.1 Processing costs 4.2 Evolutionary suboptimality 4.3 Motivational influences 4.4 Error management 5 Conclusion. (shrink)

The aim of the paper is to clarify the concept of scientific ignorance: what is it, what are its sources, and when is it epistemically detrimental for science. I present a taxonomy of scientific ignorance, distinguishing between intrinsic and extrinsic sources. I argue that the latter can create a detrimental epistemic gap, which have significant epistemic and social consequences. I provide three examples from medical research to illustrate this point. To conclude, I claim that while some types of scientific ignorance (...) are inevitable and even desirable, other types of scientific ignorance are epistemically and ethically flawed and should be prevented. (shrink)

Axiomatic rationality is defined in terms of conformity to abstract axioms. Savage limited axiomatic rationality to small worlds, that is, situations in which the exhaustive and mutually exclusive set of future states S and their consequences C are known. Others have interpreted axiomatic rationality as a categorical norm for how human beings should reason, arguing in addition that violations would lead to real costs such as money pumps. Yet a review of the literature shows little evidence that violations are actually (...) associated with any measurable costs. Limiting axiomatic rationality to small worlds, I propose a naturalized version of rationality for situations of intractability and uncertainty, all of which are not in. In these situations, humans can achieve their goals by relying on heuristics that may violate axiomatic rationality. The study of ecological rationality requires formal models of heuristics and an analysis of the structures of environments these can exploit. It lays the foundation of a moderate naturalism in epistemology, providing statements about heuristics we should use in a given situation. Unlike axiomatic rationality, ecological rationality can explain less-is-more effects, formalize when one should move from ‘is’ to ‘ought,’ and be evaluated by goals beyond coherence, such as predictive accuracy, frugality, and efficiency. Ecological rationality can be seen as a formalization of means–end instrumentalist rationality, based on Herbert Simon’s insight that rational behavior is a function of the mind and its environment. (shrink)

ABSTRACTNew trends in behavioral decision research see researchers attempting to integrate multiple-self models of behavioral economics with dual-process and dual-system theories of cognitive psych...

As scientific and engineering efforts become increasingly global in nature, the need to understand differences in perceptions of research ethics issues across countries and cultures is imperative. However, investigations into the connection between nationality and ethical decision-making in the sciences have largely generated mixed results. In Study 1 of this paper, a measure of biases and compensatory strategies that could influence ethical decisions was administered. Results from this study indicated that graduate students from the United States and international graduate students (...) studying in the US are prone to different biases. Based on these findings, recommendations are made for developing ethics education interventions to target these decision-making biases. In Study 2, we employed an ethics training intervention based on ethical sensemaking and used a well-established measure of ethical decision-making that more fully captures the content of ethical judgment. Similar to Study 1, the results obtained in this study suggest differences do exist between graduate students from the US and international graduate students in ethical decision-making prior to taking the research ethics training. However, similar effects were observed for both groups following the completion of the ethics training intervention. (shrink)

This article aims to achieve two goals: to show that probability is not the only way of dealing with uncertainty ; and to provide evidence that logic-based methods can well support reasoning with uncertainty. For the latter claim, two paradigmatic examples are presented: logic programming with Kleene semantics for modelling reasoning from information in a discourse, to an interpretation of the state of affairs of the intended model, and a neural-symbolic implementation of input/output logic for dealing with uncertainty in dynamic (...) normative contexts. (shrink)

Carroll shaped the corporate social responsibility discourse into a four-dimensional pyramid framework, which was later adapted to corporate citizenship and sustainability approaches. The four layers of the pyramid—structured from foundation to apex as economic, legal, ethical, and philanthropic responsibilities—drew considerable managerial attention. An important criticism of the economic foundation of the Carroll pyramid concerns the identification and ordering of the four dimensions, which are inadequately justified theoretically. The authors of this article propose an alternative approach that builds on the public (...) value concept, which integrates a microfoundation of psychological research into basic human needs. Drawing on their Swiss Dialogue process, the authors argue that a four-dimensional pyramid does have heuristic value for managers. The advantage of this alternative pyramid logic is that it may be contingently adapted to different cultural contexts, because it allows adaptive internal reordering. (shrink)

Nudge and boost are two competing approaches to applying the psychology of reasoning and decision making to improve policy. Whereas nudges rely on manipulation of choice architecture to steer people towards better choices, the objective of boosts is to develop good decision-making competences. Proponents of both approaches claim capacity to enhance social welfare through better individual decisions. We suggest that such efforts should involve a more careful analysis of how individual and social welfare are related in the policy context. First, (...) individual rationality is not always sufficient or necessary for improving collective outcomes. Second, collective outcomes of complex social interactions among individuals are largely ignored by the focus of both nudge and boost on individual decisions. We suggest that the design of mechanisms and social norms can sometimes lead to better collective outcomes than nudge and boost, and present conditions under which the three approaches (nudge, boost, and design) can be expected to enhance social welfare. (shrink)

Epistemic democrats are rightly concerned with the quality of outcomes and judge democratic procedures in terms of their ability to ‘track the truth’. However, their impetus to assess ‘rule by experts’ and ‘rule by the people’ as mutually exclusive has led to a meagre treatment of the role of expert knowledge in democracy. Expertise is often presented as a threat to democracy but is also crucial for enlightened political processes. Contemporary political philosophy has so far paid little attention to our (...) reliance on experts and has not sufficiently addressed the question of how expertise can be used to improve the epistemic quality of democratic decision making. We believe this lack of interest is spurred by a too hasty acceptance of arguments dismissive of the political role of experts. The article examines a series of often-cited epistemic objections and concludes that several of them are overstated or misconceived, yet they all reflect real difficulties that need to be addressed. On this background, we tentatively outline a set of mechanisms that can contribute to alleviating the irreducible problem of epistemic asymmetries and ensuring that experts really are experts and use their expertise in the right way. (shrink)

This volume reflects the development and theoretical foundation of a new paradigm for critical thinking based on inquiry. The field of critical thinking, as manifested in the Informal Logic movement, developed primarily as a response to the inadequacies of formalism to represent actual argumentative practice and to provide useful argumentative skills to students. Because of this, the primary focus of the field has been on informal arguments rather than formal reasoning. Yet the formalist history of the field is still evident (...) in its emphasis, with respect to both theory and pedagogy, on the structure and evaluation of individual, de-contextualized arguments. It is our view that such a view of critical thinking is excessively narrow and limited, failing to provide an understanding of argumentation as largely a matter of comparative evaluation of a variety of contending positions and arguments with the goal of reaching a reasoned judgment on an issue. As a consequence, traditional critical thinking instruction is problematic in failing to provide the reasoning skills that students need in order to accomplish this goal. Instead, the goal of critical thinking instruction has been seen largely as a defensive one: of learning to not fall prey to invalid, inadequate, or fallacious arguments. (shrink)

Human decision making shows systematic simplifications and deviations from the tenets of rationality (‘heuristics’) that may lead to suboptimal decisional outcomes (‘cognitive biases’). There are currently three prevailing theoretical perspectives on the origin of heuristics and cognitive biases: a cognitive-psychological, an ecological and an evolutionary perspective. However, these perspectives are mainly descriptive and none of them provides an overall explanatory framework for the underlying mechanisms of cognitive biases. To enhance our understanding of cognitive heuristics and biases we propose a neural (...) network framework for cognitive biases, which explains why our brain systematically tends to default to heuristic (‘Type 1’) decision making. We argue that many cognitive biases arise from intrinsic brain mechanisms that are fundamental for the working of biological neural networks. In order to substantiate our viewpoint, we discern and explain four basic neural network principles: (1) Association, (2) Compatibility (3) Retainment, and (4) Focus. These principles are inherent to (all) neural networks which were originally optimized to perform concrete biological, perceptual, and motor functions. They form the basis for our inclinations to associate and combine (unrelated) information, to prioritize information that is compatible with our present state (such as knowledge, opinions and expectations), to retain given information that sometimes could better be ignored, and to focus on dominant information while ignoring relevant information that is not directly activated. The supposed mechanisms are complementary and not mutually exclusive. For different cognitive biases they may all contribute in varying degrees to distortion of information. The present viewpoint not only complements the earlier three viewpoints, but also provides a unifying and binding framework for many cognitive bias phenomena. (shrink)

The present study describes the mechanism of need regulation, which accompanies the so-called “biased” decisions. We hypothesized an unconscious urge for psychological need satisfaction as the trigger for cognitive biases. In an experimental study (N = 106), participants had the opportunity to win money in a functionality test. In the test, they could either use the solution they had developed (sunk cost) or an alternative solution that offered a higher probability of winning. The selection of the sunk-cost option was the (...) most chosen option, supporting the hypothesis of this study. The reason behind the majority of participants choosing the sunk-cost option seemed to be the satisfaction of psychological needs, despite a reduced chance of winning money. An intervention, which aimed at triggering self-reflection, had no impact on the decision. The findings of this study contribute to the discussion on the reasons for cognitive biases and their formation in the human mind. Moreover, it discusses the application of the label “irrational” for biased decisions and proposes reasons for instrumental rationality, which exist at an unconscious, need-regulative level. (shrink)

Although lay notions in normative ethics have previously been investigated within the framework of the dual-process interpretation of the terror management theory (TMT), meta-ethical beliefs (subjective vs. objective morality) have not been previously investigated within the same framework. In the present research, we primed mortality salience, shown to impair reasoning performance in previous studies, to see whether it inhibits subjectivist moral judgments in three separate experiments. In Experiment 3, we also investigated whether impaired reasoning performance indeed mediates the effect of (...) mortality salience on subjectivism. The results of the three experiments consistently showed that people in the mortality salience group reported significantly less subjectivist responses than the control group, and impaired reasoning performance partially mediates it. Overall, the results are consistent with the dual-process interpretation of TMT and suggest that not only normative but also meta-ethical judgments can be explained by this model. (shrink)

Professions have a social obligation to ensure that their members’ professional behavior is morally appropriate. The psychology profession in most jurisdictions delegates the responsibility of ensuring that psychologists entering the profession are ethically competent to pre-practicum training programs. Educators responsible for teaching the ethics courses in these programs often base them on Rest’s (1984, 1994) theory that does not take into account a vast amount of contemporary psychological and neuroscientific research data on moral decision making. My aim with this article (...) is therefore to summarize the psychological and neuroscience research findings relevant to moral decision making and consider how educators who teach ethics courses can apply them in developing ethics courses grounded in research. (shrink)

The role and ethics of professionals in business and economics have been questioned, especially after the financial crisis of 2008. Some suggest a reorientation using concepts such as craftsmanship. In this article, I will explore professional practices within the context of behavioural theory and business ethics. I suggest that scholars of behavioural theory need a strategy to deal with normative questions to meet their ambition of practical relevance. Evidence-based management, a recent behavioural approach, may assist business ethics scholars in understanding (...) how professionals infer ‘evidence’ to make decisions. For a professional, ethical issues are an integral part of decision-making at critical moments. As reflective practitioners, they develop insights related to ethical concerns when collecting and assessing evidence within decision-making processes. (shrink)

According to a classic position in analytic philosophy of mind, we must interpret agents as largely rational in order to be able to attribute intentional mental states to them. However, adopting this position requires clarifying in what way and by which criteria agents can still be irrational. In this paper I will offer one such criterion. More specifically, I argue that the kind of rationality methodologically required by intentional interpretation is to be specified in terms of psychological efficacy. Thereby, this (...) notion can be distinguished from a more commonly used notion of rationality and hence cannot be shown to be undermined by the potential prevalence of a corresponding kind of irrationality. (shrink)

Deliberation is a standard procedure to make decisions in not too large groups. It has the advantage that the group members can learn from each other and that, at the end, often a consensus emerges that everybody endorses. But a deliberation procedure also has a number of disadvantages. E.g., what consensus is reached usually depends on the order in which the different group members speak. More specifically, the group member who speaks first often has an unproportionally high impact on the (...) final decision: She anchors the deliberation process. While the anchoring effect undoubtably appears in real deliberating groups, we ask whether it also appears in groups whose members are truth-seeking and rational in the sense that they take the information provided by their fellow group members properly into account by updating their beliefs according to plausible rules. To answer this question and to make some progress towards explaining the anchoring effect, a formal model is constructed and analyzed. Using this model, we study the anchoring effect in homogenous groups, for which we provide analytical results, and in inhomogeneous groups, for which we provide simulation results. (shrink)

Philosophers and psychologists have long worried that the human tendency to anthropomorphize leads us to err in our understanding of nonhuman minds. This tendency, which I call intuitive anthropomorphism, is a heuristic used by our unconscious folk psychology to understand nonhuman animals. The dominant understanding of intuitive anthropomorphism underestimates its complexity. If we want to understand and control intuitive anthropomorphism, we must treat it as a cognitive bias and look to the empirical evidence. This evidence suggests that the most common (...) control for intuitive anthropomorphism, Morgan’s Canon, should be rejected, while others are incomplete. It also suggests new approaches. (shrink)

Dual process theory proposes clusters of features that form two dichotomous groups in cognition. One standing internal issue is defining what the reference of these two dichotomous groups could be in the mind or brain. Does dual process theory speak of two systems, types, minds, modes, kinds or just metaphors? A particular common answer is that differences in clusters of features are evidence of different underlying systems, often called system 1 and system 2. However, the suggestion to abandon the ‘system’ (...) terminology is now common in the literature, but the consequences of doing so need to be addressed. This work reviews and critically discusses previous suggestions. (shrink)

Clinical diagnostic medicine is an experimental science based on observation, hypothesis making, and testing. It is an use dynamic process that involves observation and summary, diagnostic conjectures, testing, review, observation and summary, new or revised conjectures, i.e. it is an iterative process. It can then be said that diagnostic hypotheses are also ‘observation-laden’. My aim is to enlarge on the strategies of medical diagnosis as these are meshed in training and clinical experience—that is, to describe the patterns of reasoning used (...) by experienced clinicians under different diagnostic circumstances and how these patterns of inquiry allow further insight into the evaluation and treatment of patients. I do not aim to present a theory and illustrate it with examples; I wish rather am to let a realistic example, similar to actual clinical scenarios, direct the exposition. To this end, I introduce an account of medical diagnosis—briefly comparing and contrasting it to other accounts—in order to focus on discussing the process of diagnosis through a detailed clinical case. (shrink)

This chapter illustrates that in order to reach a decision a leader must decide which persons should be involved in the process and when. A relatively common method of involving others is delegating the decision to a group. A main objective of this is often to generate as many innovative ideas as possible, and different techniques can be employed for this, including brainstorming. The proposal generated must then be validated by the group using different criteria on the basis of which (...) it is then relatively easy to filter out proposals that do not reach the goals that have been set. However, a leader needs to collect additional information in order to reach a decision. By the use of information technology vast amounts of information may be accumulated. Thus, different kinds of filtering or weeding methods must be used in order to quickly obtain relevant information. This information can help leaders create forecasts and minimize risks. They must also be able to present their ideas in the most attractive way possible in order to be heard and arrive at decisions. The design of the presentation is therefore critical. Sometimes it is not enough for leaders just to present an idea, they are then obliged to negotiate in order to reach a decision. -/- . (shrink)

In the first half of this dissertation, I develop a heuristic methodology for analyzing scientific solutions to the problem of underdetermination. Heuristics are rough-and-ready procedures used by scientists to construct models, design experiments, interpret evidence, etc. But as powerful as they are, heuristics are also error-prone. Therefore, I argue that they key to prudently using a heuristic is the articulation of meta-heuristics---guidelines to the kinds of problems for which a heuristic is well- or ill-suited. Given that heuristics will introduce certain (...) errors into our scientific investigations, I emphasize the importance of a particular category of meta-heuristics involving the search for robust evidence. Robustness is understood to be the epistemic virtue bestowed by agreement amongst multiple modes of determination. The more modes we have at our disposal, and the more these confirm the same result, the more confident can we be that a result is not a mere artifact of some heuristic simplification. Through an analysis of case-studies in the philosophy of biology and clinical trials, I develop a principled method for modeling and evaluating heuristics and robustness claims in a qualitative problem space. The second half of the dissertation deploys the heuristic methodology to address ethical and epistemological issues in the science of clinical trials. To that end, I develop a network model for the problem space of clinical research, capable of representing the various kinds of experiments, epistemic relationships, and ethical justifications intrinsic to the domain. I then apply this model to ongoing research with the antibacterial agent, moxifloxacin, for the treatment of tuberculosis, tracking its development from initially successful and promising in vitro and animal studies to its disappointing and discordant performance across five human efficacy trials. Given this failure to find a robust result with moxifloxacin across animal and human studies, what should researchers now do? While my final analysis of this case does not definitively answer that question, I demonstrate how my methodology, unlike a statistical meta-analysis, helps to clarify the directions for further research. (shrink)

According to a posteriori physicalism, phenomenal properties are physical properties, despite the unbridgeable cognitive gap that holds between phenomenal concepts and physical concepts. Current debates about a posteriori physicalism turn on what I call “the perspicuity principle”: it is impossible for a suitably astute cognizer to possess concepts of a certain sort—viz., narrow concepts—without being able to tell whether the referents of those concepts are the same or different. The perspicuity principle tends to strike a posteriori physicalists as implausibly rationalistic; (...) further, a posteriori physicalists maintain that even if the principle is applicable to many narrow concepts, phenomenal concepts have unique features that render them inferentially isolated from other narrow concepts ). I argue, on the contrary, that the case for the perspicuity principle is quite strong. Moreover, not only have versions of the PCS repeatedly failed, likely, all versions will, given the strange combination of lucidity and opacity that the PCS has to juggle. I conclude that a posteriori physicalists currently lack a principled objection to classic anti-physicalist arguments. (shrink)

This paper proposes and defends the multifactorial view of stereotyping. According to this view, multiple factors determine whether or not any act of stereotyping increases the chance of an accurate judgment being made about an individual to whom the stereotype is applied. To support this conclusion, various features of acts of stereotyping that can determine the accuracy of stereotyping judgments are identified. The argument challenges two existing views that suggest that it is relatively easy for an act of stereotyping to (...) increase the chance of an accurate judgment being made. In the process, it shows why stereotyping that associates black people more strongly than white people with criminality in the United States cannot be defended, and actions to reduce the stereotyping criticized, on the basis that engaging in this form of stereotyping increases the chance of accurate judgments. As each of these important conclusions is supported by results from empirical psychology, the discussion exemplifies and vindicates the naturalistic approach to epistemology, according to which psychological findings provide an important contribution to understanding the epistemic standing of beliefs. (shrink)

When making inferences about similar others, people anchor and adjust away from themselves. However, research on relational self theory suggests the possibility of using knowledge about others as an anchor when they are more similar to a target. We investigated whether social inferences are made on the basis of significant other knowledge through an anchoring and adjustment process, and whether anchoring on a significant other is more effortful than anchoring on the self. Participants answered questions about their likes and habits, (...) as well as the likes and habits of a significant other, a target similar to their significant other, and a yoked control. We found that prediction differences between the significant other and similar target led to longer response times, and we found the opposite effect for self and target differences, suggesting anchoring and adjustment from the significant other rather than the self. These effects were moderated by the source-relative salience of the dimension being evaluated. The evidence was mixed with respect to the question of whether anchoring on a significant other is more effortful than anchoring on the self. (shrink)

Mandevillian intelligence is a specific form of collective intelligence in which individual cognitive vices are seen to play a positive functional role in yielding collective forms of cognitive success. The present paper introduces the concept of mandevillian intelligence and reviews a number of strands of empirical research that help to shed light on the phenomenon. The paper also attempts to highlight the value of the concept of mandevillian intelligence from a philosophical, scientific and engineering perspective. Inasmuch as we accept the (...) notion of mandevillian intelligence, then it seems that the cognitive and epistemic value of a specific social or technological intervention will vary according to whether our attention is focused at the individual or collective level of analysis. This has a number of important implications for how we think about the design and evaluation of collective cognitive systems. For example, the notion of mandevillian intelligence forces us to take seriously the idea that the exploitation of individual cognitive shortcomings could, in some situations, provide a productive route to collective forms of cognitive and epistemic success. (shrink)

I have inquired as to what sort of knowledge humans need to make justifiable claims regarding free will. I defended the thesis that humans do not have the sort of knowledge which would allow them to make such claims. Adopting the view of mind based on cognitive science and Kant’s philosophy of mind, first I laid out the characteristics of that knowledge with the help of a simulation example I devised. Then, upon investigating the epistemic relations between the different sources (...) of knowledge and the agents of a system (such as the relation between the programmer and the simulated agents as well as god and humans), I claimed that knowledge bearing those characteristics cannot be accessible to human beings. (shrink)

This paper integrates literature from the social sciences and humanities concerning the persuasive impact of visual material, highlighting issues of emotion and identification. Visuals are used not only to illustrate news and feature genres but also in advertising and campaigns that attempt to persuade their target audiences to change attitudes and behaviours. These include health, safety and charity campaigns, that attempt to socially engineer change in people’s beliefs, attitudes and behaviours. With the increasing presence of such visuals comes a more (...) emotive media environment with which people are forced to engage, and, under certain circumstances, disengage. (shrink)

Un grand nombre de problèmes dont traite aujourd'hui la théorie de la décision reposent sur des problématiques qui appartiennent à des approches philosophiques, méthodologiques et théoriques fort différentes et dont l'auteur deChoix rationnel et vie publiquedéplore à juste titre l'absence d'unité intrinsèque. En effet, les racines de la théorie contemporaine du choix rationnel ont des ramifications dans trois traditions philosophiques qui ont été maintenues sans entretenir de contacts: théories philosophiques de l'action d'Aristote à Hume, à Kant et à la philosophie (...) analytique de l'action de Davidson; la théorie du conflit de Hobbes à David Gauthier; la théorie de la justice (d'inspiration utilitariste qui a profondément marqué la pensée économique du XXesiècle). Ces branches ont entretenu des interactions sporadiques, mais ces relations n'ont jamais été exploitées systématiquement. Le travail que présente l'auteur est une première tentative dans cette direction, du moins en langue française. (shrink)

Afterthoughts on biases in history perception Contemporary social psychology describes various deformations of processing social information leading to distortions of knowledge about other people. What is more, a person in everyday life refers to lay convictions and ideas common in his/her cultural environment that distort his/her perceptions. Therefore it is difficult to be surprised that authors of narrations in which participants of history are presented use easily available common-sense psychology, deforming images of both the participants of history and their activities, (...) as well as the sequence of events determined by these activities. Which cognitive biases, how often, and in what intensity they will be presented in historical narrations depend on statements of dominating common-sense psychology. The article outlines some biases made by historian-lay psychologists, such as attributional asymmetry or hindsight effects, whose occurrence in their thinking, as formed in the cultural sphere of the West, influences history perception and conducted historical interpretations. (shrink)

Presented article attempts to show sense of life perspective as a determinant of decision making. It is assumed that the sense of life perspective described as life attitudes is significant in assessment of decision problem defined in the predecision phase of the decision making process. The predicted dependence was analysed in three categories of decision: self-development, financial and voting. The research was conducted on two groups of 186 and 86 participants. Two methods were used in the research: the Life Attitude (...) Profile -Revised and the Decision Assessment Questionnaire. In statistical analysis, the canonical correlation analysis was used. The scores show that the life attitudes are correlated with the assessment factor of each tested category of decision. However, the most significant relationship is found in the self-development decision. (shrink)

According to active inference, action is enabled by a top-down modulation of sensory signals. Computational models of this mechanism complement ideomotor theories of action representation. Such theories postulate common neural representations for action and perception, without specifying how action is enabled by such representations. In active inference, motor commands are replaced by proprioceptive predictions. In order to initiate action through such predictions, sensory prediction errors have to be attenuated. This paper argues that such top-down modulation involves systematic misrepresentations. More specifically, (...) the paper first argues for the following conditional claim. If active inference provides an accurate computational description of how action is enabled in the brain, then action is enabled by systematic misrepresentations. Furthermore, it is argued that an inference to the best explanation provides reason for believing the antecedent is true: Firstly, active inference provides a crucial extension to ideomotor theories. Secondly, active inference explains otherwise puzzling phenomena related to sensory attenuation, e.g. in force-matching or self-tickling paradigms. Taken together, these reasons support the claim that action is indeed enabled by systematic misrepresentations. The claim casts doubt on the assumption that representations are systematically beneficial to the extent that they are true: if the argument in this paper is sound, systematically beneficial misrepresentations may lie at the heart of our neural architecture. (shrink)

Uncertainty is a feeling of anxiety and a part of culture since the dawn of civilization. Civilizations have invented numerous ways to cope with uncertainty, statistics is one of those technologies. The rhetoric as the discourse of investment theory uncovers that the theory of statistics applied is a blind spot in the current conversation about investment theory and practice. Probability and prediction in investment theory look like a tying sale, since investment theory is founded on stochastical predictability. The proof of (...) unpredictability, however, lies outside the paradigm of statistics, because statistics assumes that the substrate, that produces probability outcomes, is stable. The theory of objective probabilities founds the Capital Asset Pricing Model but does not stochastically predict, and neither do Markowitz’s subjective probabilities for his portfolio theory. Statistical models for investing have a function, despite that they cannot predict: in essence, the models try to quantify statistically the equity, the fairness of the distribution of risk and return between parties involved. In the dissertation, a lot of ideas to change finance have had attention: the alternative statistical theory of Mandelbrot, bubble theory, political finance, the analysis of rhetoric, the analysis of culture, innovative practices, ethics in the form of virtue and value ethics, and the history of finance. How to make the culture of finance more heterogeneous? That starts with awareness of the current problems, the introduction of multiform metaphors for investment theory, and handling the ambiguity of theory uncertainty, by presenting, explaining and elaborating the alternatives. (shrink)