According to evidentialist views, credence in a proposition p should be proportional to the degree of evidential support that one has in favor of p. However, empirical evidence suggests that our credences are systematically sensitive to practical factors. In this article, I provide a cost–benefit analysis of credences' practical sensitivity. The upshot of this analysis is that credences sensitive to practical factors fare better than practically insensitive ones along several dimensions. All things considered, our credences should be sensitive to practical (...) factors. (shrink)

This paper is about guessing: how people respond to a question when they aren’t certain of the answer. Guesses show surprising and systematic patterns that the most obvious theories don’t explain. We argue that these patterns reveal that people aim to optimize a tradeoff between accuracy and informativity when forming their guess. After spelling out our theory, we use it to argue that guessing plays a central role in our cognitive lives. In particular, our account of guessing yields new theories (...) of belief, assertion, and the conjunction fallacy—the psychological finding that people sometimes rank a conjunction as more probable than one of its conjuncts. More generally, we suggest that guessing helps explain how boundedly rational agents like us navigate a complex, uncertain world. (shrink)

According to comparativism, degrees of belief are reducible to a system of purely ordinal comparisons of relative confidence. (For example, being more confident that P than that Q, or being equally confident that P and that Q.) In this paper, I raise several general challenges for comparativism, relating to (i) its capacity to illuminate apparently meaningful claims regarding intervals and ratios of strengths of belief, (ii) its capacity to draw enough intuitively meaningful and theoretically relevant distinctions between doxastic states, and (...) (iii) its capacity to handle common instances of irrationality. (shrink)

The mentioning of error-possibilities makes us less likely to ascribe knowledge. This paper offers a novel psychological account of this data. The account appeals to “subadditivity,” a well-known psychological tendency to judge possibilities as more likely when they are disjunctively described.

The relative input of payoffs and probabilities into risk judgment The study was designed to investigate the relative input of payoffs and probabilities into risk judgment on the basis of the analysis of information search pattern. The modified version of MouselabWeb software was used as an investigative tool. The amount, the kind and the order of information accessed by subjects to evaluate risk was collected from ordinary respondents and respondents trained in mathematics and statistics. In the latter group were 75 (...) students and young researchers working at National Aeronautics and Space Administration. The ordinary subjects were 67 Polish students of social sciences. As expected, the NASA group considered more information than ordinary students and searched for more information about probabilities. However, the ratio of information about payoffs to probabilities was close to 1 in both groups. Moreover, average risk rates were similar in both groups. It was also observed that risk rates were positively related with the amount of information about probabilities considered by subjects. (shrink)

The Monty Hall Dilemma (MHD) is a two-step decision problem involving counterintuitive conditional probabilities. The first choice is made among three equally probable options, whereas the second choice takes place after the elimination of one of the non-selected options which does not hide the prize. Differing from most Bayesian problems, statistical information in the MHD has to be inferred, either by learning outcome probabilities or by reasoning from the presented sequence of events. This often leads to suboptimal decisions and erroneous (...) probability judgments. Specifically, decision makers commonly develop a wrong intuition that final probabilities are equally distributed, together with a preference for their first choice. Several studies have shown that repeated practice enhances sensitivity to the different reward probabilities, but does not facilitate correct Bayesian reasoning. However, modest improvements in probability judgments have been observed after guided explanations. To explain these dissociations, the present review focuses on two types of causes producing the observed biases: Emotional-based choice biases and cognitive limitations in understanding probabilistic information. Among the latter, we identify a crucial cause for the universal difficulty in overcoming the equiprobability illusion: Incomplete representation of prior and conditional probabilities. We conclude that repeated practice and/or high incentives can be effective for overcoming choice biases, but promoting an adequate partitioning of possibilities seems to be necessary for overcoming cognitive illusions and improving Bayesian reasoning. (shrink)

Causal reasoning is one of our most central cognitive competencies, enabling us to adapt to our world. Causal knowledge allows us to predict future events, or diagnose the causes of observed facts. We plan actions and solve problems using knowledge about cause-effect relations. Without our ability to discover and empirically test causal theories, we would not have made progress in various empirical sciences. In the past decades, the important role of causal knowledge has been discovered in many areas of cognitive (...) psychology. Despite the ubiquity of causal reasoning, textbooks of cognitive psychology have neglected this growing field. The goal of The Oxford Handbook of Causal Reasoning is to fill this gap. The handbook brings together the leading researchers in the field of causal reasoning and offers state-of-the-art presentations of theories and research. It provides introductions of competing theories of causal reasoning, and discusses its role in various cognitive functions and domains. The final section presents research from neighboring fields. 1. Causal Reasoning: An Introduction Michael R. Waldmann Part I: Theories of Causal Cognition 2. Associative Accounts of Causal Cognition Mike E. Le Pelley, Oren Griffiths, and Tom Beesley 3. Rules of Causal Judgment: Mapping Statistical Information Onto Causal Beliefs José C. Perales, Andrés Catena, Antonio Cándido, and Antonio Maldonado 4. The Inferential Reasoning Theory of Causal Learning: Toward a Multi- Process Propositional Account Yannick Boddez, Jan De Houwer, and Tom Beckers 5. Causal Invariance as an Essential Constraint for Creating a Causal Representation of the World: Generalizing the Invariance of Causal Power Patricia W. Cheng and Hongjing Lu 6. The Acquisition and Use of Causal Structure Knowledge Benjamin Margolin Rottman 7. Formalizing Prior Knowledge in Causal Induction Thomas L. Griffiths 8. Causal Mechanisms Samuel G. B. Johnson and Woo-kyoung Ahn 9. Force Dynamics and Causation Phillip Wolff and Robert Thorstad 10. Mental Models and Causation P. N. Johnson- Laird and Sangeet S. Khemlani 11. Pseudocontingencies Klaus Fiedler and Florian Kutzner 12. Singular Causation David Danks 13. Cognitive Neuroscience of Causal Reasoning Joachim T. Operskalski and Aron K. Barbey Part II: Basic Cognitive Functions 14. Visual Impressions of Causality Peter White 15. Goal-Directed Actions Bernhard Hommel 16. Planning and Control Magda Osman 17. Reinforcement Learning and Causal Models Samuel J. Gershman 18. Causation and the Probability of Causal Conditionals David E. Over 19. Causal Models and Conditional Reasoning Mike Oaksford and Nick Chater 20. Concepts as Causal Models: Categorization Bob Rehder 21. Concepts as Causal Models: Induction Bob Rehder 22. Causal Explanation Tania Lombrozo and Nadya Vasilyeva 23. Diagnostic Reasoning Björn Meder and Ralf Mayrhofer 24. Inferring Causal Relations by Analogy Keith J. Holyoak and Hee-Seung Lee 25. Causal Argument Ulrike Hahn, Roland Bluhm, and Frank Zenker 26. Causality in Decision- Making York Hagmayer and Philip M. Fernbach Part III: Domains of Causal Reasoning 27. Intuitive Theories Tobias Gerstenberg and Joshua B. Tenenbaum 28. Space, Time, and Causality Marc J. Buehner 29. Causation in Legal and Moral Reasoning David A. Lagnado and Tobias Gerstenberg 30. The Role of Causal Knowledge in Reasoning About Mental Disorders Woo-kyoung Ahn, Nancy S. Kim, and Matthew S. Lebowitz 31. Causality and Causal Reasoning in Natural Language Torgrim Solstad and Oliver Bott 32. Social Attribution and Explanation Denis Hilton Part IV: Development, Phylogeny, and Culture 33. The Development of Causal Reasoning Paul Muentener and Elizabeth Bonawitz 34. Causal Reasoning in Non-Human Animals Christian Schloegl and Julia Fischer 35. Causal Cognition and Culture Andrea Bender, Sieghard Beller, and Douglas L. Medin. (shrink)

I investigate whether degreed beliefs are able to play the predictive, explanatory, and modeling roles that they are frequently taken to play. The investigation focuses on evidence—both from sources familiar in epistemology as well as recent work in behavioral economics and cognitive psychology—of variability in agents' apparent degrees of belief. Although such variability has been noticed before, there has been little philosophical discussion of its breadth or of the psychological mechanisms underlying it. Once these are appreciated, the inadequacy of degrees (...) of belief becomes clear. I offer a theoretical alternative to degrees of belief, what I call the filter theory. (shrink)

Decision making theory in general, and mental models in particular, associate judgment and choice. Decision choice follows probability estimates and errors in choice derive mainly from errors in judgment. In the studies reported here we use the Monty Hall dilemma to illustrate that judgment and choice do not always go together, and that such a dissociation can lead to better decision-making. Specifically, we demonstrate that in certain decision problems, exceeding working memory limitations can actually improve decision choice. We show across (...) four experiments that increasing the number of choice alternatives forces people to collapse choices together, resulting in better decision-making. While choice performance improves, probability judgments do not change, thus demonstrating an important dissociation between choice and probability judgments. We propose the Collapsing Choice Theory (CCT) which explains how working memory capacity, probability estimation, choice alternatives, judgment, and regret all interact and effect decision quality. (shrink)

This is a study in the meaning of natural language probability operators, sentential operators such as probably and likely. We ask what sort of formal structure is required to model the logic and semantics of these operators. Along the way we investigate their deep connections to indicative conditionals and epistemic modals, probe their scalar structure, observe their sensitivity to contex- tually salient contrasts, and explore some of their scopal idiosyncrasies.

ObjectiveWe argue that people often fail to perceive and process stimuli easily available to them. In other words, we challenge the tacit assumption that awareness is unbounded and provide evidence that humans regularly fail to see and use stimuli and information easily available to them. We call this phenomenon “bounded awareness” (Bazerman and Chugh in Frontiers of social psychology: negotiations, Psychology Press: College Park 2005). Findings We begin by first describing perceptual mental processes in which obvious information is missed—that is, (...) simply not seen—by the visual perceiver. Inattentional blindness and change blindness are examples. We then extend this phenomenon to decision making and forecasting, using evidence about focalism to illustrate how people over focus on some information and fail to use other easily available information. We next examine how these processes of bounded awareness may extend to other important domains and across levels of analysis, such as information-sharing in groups, decision making in negotiators, and in competitive bidding situations such as auctions.ConclusionsBounded awareness is a phenomenon that encompasses a variety of psychological processes, all of which lead to the same error: a failure to see, seek, use, or share important and relevant information that is easily seen, sought, used, or shared. (shrink)

Because the conjunction pandq implies p, the value of a bet on pandq cannot exceed the value of a bet on p at the same stakes. We tested recognition of this principle in a betting paradigm that (a) discouraged misreading p as pandnotq, and (b) encouraged genuinely conjunctive reading of pandq. Frequent violations were nonetheless observed. The findings appear to discredit the idea that most people spontaneously integrate the logic of conjunction into their assessments of chance.

Many philosophers in the field of meta-ethics believe that rational degrees of confidence in moral judgments should have a probabilistic structure, in the same way as do rational degrees of belief. The current paper examines this position, termed “moral Bayesianism,” from an empirical point of view. To this end, we assessed the extent to which degrees of moral judgments obey the third axiom of the probability calculus, ifP(A∩B)=0thenP(A∪B)=P(A)+P(B), known as finite additivity, as compared to degrees of beliefs on the one (...) hand and degrees of desires on the other. Results generally converged to show that degrees of moral judgment are more similar to degrees of belief than to degrees of desire in this respect. This supports the adoption of a Bayesian approach to the study of moral judgments. To further support moral Bayesianism, we also demonstrated its predictive power. Finally, we discuss the relevancy of our results to the meta-ethical debate between moral cognitivists and moral non-cognitivists. (shrink)

While many authors distinguish belief from acceptance, it seems almost universally agreed that no similar distinction can be drawn between degrees of belief, or credences, and degrees of acceptance. I challenge this assumption in this paper. Acceptance comes in degrees and acknowledging this helps to resolve problems in at least two philosophical domains. Degrees of acceptance play vital roles when we simplify our reasoning, and they ground the common ground of a conversation if we assume context probabilism, i.e., that the (...) common ground must be represented with probability spaces rather than possible worlds. (shrink)

Intelligence analysts, like other professionals, form norms that define standards of tradecraft excellence. These norms, however, have evolved in an idiosyncratic manner that reflects the influence of prominent insiders who had keen psychological insights but little appreciation for how to translate those insights into testable hypotheses. The net result is that the prevailing tradecraft norms of best practice are only loosely grounded in the science of judgment and decision-making. The “common sense” of prestigious opinion leaders inside the intelligence community has (...) pre-empted systematic validity testing of the training techniques and judgment aids endorsed by those opinion leaders. Drawing on the scientific literature, we advance hypotheses about how current best practices could well be reducing rather than increasing the quality of analytic products. One set of hypotheses pertain to the failure of tradecraft training to recognize the most basic threat to accuracy: measurement error in the interpretation of the same data and in the communication of interpretations. Another set of hypotheses focuses on the insensitivity of tradecraft training to the risk that issuing broad-brush, one-directional warnings against bias (e.g., over-confidence) will be less likely to encourage self-critical, deliberative cognition than simple response-threshold shifting that yields the mirror-image bias (e.g., under-confidence). Given the magnitude of the consequences of better and worse intelligence analysis flowing to policy-makers, we see a compelling case for greater funding of efforts to test what actually works. (shrink)

According to the foundations of economic theory, agents have stable and coherent preferences that guide their choices among alternatives. However, people are constrained by information-processing and memory limitations and hence have a propensity to avoid cognitive load. We propose that this in turn will encourage them to respond to preferences and goals influenced by context and memory representations.

This paper addresses the apparent mismatch between the normative and descriptive literatures in the cognitive science of conditional reasoning. Descriptive psychological theories still regard material implication as the normative theory of the conditional. However, over the last 20 years in the philosophy of language and logic the idea that material implication can account for everyday indicative conditionals has been subject to severe criticism. The majority view is now apparently in favour of a subjective conditional probability interpretation. A comparative model fitting (...) exercise is presented that shows that a conditional probability model can explain as much of the data on abstract indicative conditional reasoning tasks as psychological theories that supplement material implication with various rationally unjustified processing assumptions. Consequently, when people are asked to solve laboratory reasoning tasks, they can be seen as simply generalising their everyday probabilistic reasoning strategies to this novel context. (shrink)

Some naturalistic philosophers of mind subscribing to the predictive processing theory of mind have adopted a realist attitude towards the results of Bayesian cognitive science. In this paper, we argue that this realist attitude is unwarranted. The Bayesian research program in cognitive science does not possess special epistemic virtues over alternative approaches for explaining mental phenomena involving uncertainty. In particular, the Bayesian approach is not simpler, more unifying, or more rational than alternatives. It is also contentious that the Bayesian approach (...) is overall better supported by the empirical evidence. So, to develop philosophical theories of mind on the basis of a realist interpretation of results from Bayesian cognitive science is unwarranted. Naturalistic philosophers of mind should instead adopt an anti-realist attitude towards these results and remain agnostic as to whether Bayesian models are true. For continuing on with an exclusive focus and praise of Bayes within debates about the predictive processing theory will impede progress in philosophical understanding of scientific practice in computational cognitive science as well as of the architecture of the mind. (shrink)

We present a theory of decision by sampling (DbS) in which, in contrast with traditional models, there are no underlying psychoeconomic scales. Instead, we assume that an attribute’s subjective value is constructed from a series of binary, ordinal comparisons to a sample of attribute values drawn from memory and is its rank within the sample. We assume that the sample reflects both the immediate distribution of attribute values from the current decision’s context and also the background, real-world distribution of attribute (...) values. DbS accounts for concave utility functions; losses looming larger than gains; hyperbolic temporal discounting; and the overestimation of small probabilities and the underestimation of large probabilities. Ó 2005 Elsevier Inc. All rights reserved. (shrink)

Placing the future centre stage as a way of understanding cognition is gaining attention in psychology. The general modern label for this is “prospection” which refers to the process of representing and thinking about possible future states of the world. Several theorists have claimed that episodic and prospective memory, as well as hypothetical thinking (mental simulation) and conditional reasoning are necessary cognitive faculties that enable prospection. Given the limitations in current empirical efforts connecting these faculties to prospection, the aim of (...) this mini review is to argue that the findings show that they are sufficient, but not necessary for prospection. As a result, the short concluding section gives an outline of an alternative conceptualisation of prospection. The proposal is that the critical characteristics of prospection are the discovery of, and maintenance of goals via causal learning. (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)

Memory exhibits episodic superposition, an analog of the quantum superposition of physical states: Before a cue for a presented or unpresented item is administered on a memory test, the item has the simultaneous potential to occupy all members of a mutually exclusive set of episodic states, though it occupies only one of those states after the cue is administered. This phenomenon can be modeled with a nonadditive probability model called overdistribution (OD), which implements fuzzy-trace theory's distinction between verbatim and gist (...) representations. We show that it can also be modeled based on quantum probability theory. A quantum episodic memory (QEM) model is developed, which is derived from quantum probability theory but also implements the process conceptions of global matching memory models. OD and QEM have different strengths, and the current challenge is to identify contrasting empirical predictions that can be used to pit them against each other. (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)

This paper evaluates four competing psychological explanations for why the jury in the O.J. Simpson murder trial reached the verdict they did: explanatory coherence, Bayesian probability theory, wishful thinking, and emotional coherence. It describes computational models that provide detailed simulations of juror reasoning for explanatory coherence, Bayesian networks, and emotional coherence, and argues that the latter account provides the most plausible explanation of the jury's decision.

The conjunction fallacy has been a key topic in debates on the rationality of human reasoning and its limitations. Despite extensive inquiry, however, the attempt of providing a satisfactory account of the phenomenon has proven challenging. Here, we elaborate the suggestion (first discussed by Sides et al., 2001) that in standard conjunction problems the fallacious probability judgments experimentally observed are typically guided by sound assessments of confirmation relations, meant in terms of contemporary Bayesian confirmation theory. Our main formal result is (...) a confirmation-theoretic account of the conjuntion fallacy which is proven robust (i.e., not depending on various alternative ways of measuring degrees of confirmation). The proposed analysis is shown distinct from contentions that the conjunction effect is in fact not a fallacy and is compared with major competing explanations of the phenomenon, including earlier references to a confirmation-theoretic account. (shrink)

Previous studies with adult participants have investigated reasoning from one or two uncertain premises with simple deductive arguments. Three exploratory experiments were designed to extend these results by investigating the evaluation of the plausibility of the conclusion of "combined" arguments, i.e. arguments constituted by two or more "atomic" standard arguments which each involved the same conclusion and one uncertain premise out of two. One example is "If she meets Nicolas it is very improbable she will go to the swimming pool; (...) if she meets Sophie it is very probable she will go to the swimming pool; she meets Nicolas; she meets Sophie". With two conflicting arguments, one supporting and one unfavourable, participants chose a compromise stance (Exp. 1), unless the thematic content of the premises allows one to consider one argument as more important than the other (Exp. 3). With two favourable arguments and rather unfamiliar materials, two typical behaviours appeared. One consisted in choosing a degree of plausibility of the conclusion that is intermediate between the modals asserted in the premises, and the other in choosing a more favourable degree than the most favourable modal (Exp. 1). The plausibility of the conclusion increased when the number of supporting atomic arguments increased from one to three, and decreased when the number of unfavourable arguments increased (Exp. 2). Theoretical implications are discussed and a model is sketched. (shrink)

The conjunction fallacy has been a key topic in debates on the rationality of human reasoning and its limitations. Despite extensive inquiry, however, the attempt to provide a satisfactory account of the phenomenon has proved challenging. Here we elaborate the suggestion (first discussed by Sides, Osherson, Bonini, & Viale, 2002) that in standard conjunction problems the fallacious probability judgements observed experimentally are typically guided by sound assessments of _confirmation_ relations, meant in terms of contemporary Bayesian confirmation theory. Our main formal (...) result is a confirmation-theoretic account of the conjunction fallacy, which is proven _robust_ (i.e., not depending on various alternative ways of measuring degrees of confirmation). The proposed analysis is shown distinct from contentions that the conjunction effect is in fact not a fallacy, and is compared with major competing explanations of the phenomenon, including earlier references to a confirmation-theoretic account. (shrink)

We develop a conceptual and formal clarification of notion of surprise as a belief-based phenomenon by exploring a rich typology. Each kind of surprise is associated with a particular phase of cognitive processing and involves particular kinds of epistemic representations (representations and expectations under scrutiny, implicit beliefs, presuppositions). We define two main kinds of surprise: mismatch-based surprise and astonishment. In the central part of the paper we suggest how a formal model of surprise can be integrated with a formal model (...) of belief change. We investigate the role of surprise in triggering the process of belief reconsideration. There are a number of models of surprise developed in the psychology of emotion. We provide several comparisons of our approach with those models. (shrink)

This paper proposes that self-deception results from the emotional coherence of beliefs with subjective goals. We apply the HOTCO computational model of emotional coherence to simulate a rich case of self-deception from Hawthorne's The Scarlet Letter.We argue that this model is more psychologically realistic than other available accounts of self-deception, and discuss related issues such as wishful thinking, intention, and the division of the self.

(2013). Cognitive shortcuts in causal inference. Argument & Computation: Vol. 4, Formal Models of Reasoning in Cognitive Psychology, pp. 64-88. doi: 10.1080/19462166.2012.682655.

Five experiments investigated how people use categories to make inductions about objects whose categorisation is uncertain. Normatively, they should consider all the categories the object might be in and use a weighted combination of information from all the categories: bet-hedging. The experiments presented people with simple, artificial categories and asked them to make an induction about a new object that was most likely in one category but possibly in another. The results showed that the majority of people focused on the (...) most likely category in making inductions, although there was a group of consistently normative responders who used information from both categories (about 25% of our college population). Across experiments the overall pattern of results suggests that performance in the task is improved not by understanding the underlying principles of bet-hedging but by increasing the likelihood that multiple categories are in working memory at the time of the induction. We discuss implications for improving everyday inductions. (shrink)

This paper aims to make explicit the methodological conditions that should be satisfied for the Bayesian model to be used as a normative model of human probability judgment. After noticing the lack of a clear definition of Bayesianism in the psychological literature and the lack of justification for using it, a classic definition of subjective Bayesianism is recalled, based on the following three criteria: an epistemic criterion, a static coherence criterion and a dynamic coherence criterion. Then it is shown that (...) the adoption of this framework has two kinds of implications. The first one regards the methodology of the experimental study of probability judgment. The Bayesian framework creates pragmatic constraints on the methodology that are linked to the interpretation of, and the belief in, the information presented, or referred to, by an experimenter in order for it to be the basis of a probability judgment by individual participants. It is shown that these constraints have not been satisfied in the past, and the question of whether they can be satisfied in principle is raised and answered negatively. The second kind of implications consists of two limitations in the scope of the Bayesian model. They regard (1) the background of revision (the Bayesian model considers only revising situations but not updating situations), and (2) the notorious case of the null priors. In both cases Lewis’ rule is an appropriate alternative to Bayes’ rule, but its use faces the same operational difficulties. (shrink)

This paper focuses on one matter that poses a problem for both human judges and standard probability frameworks, namely the assumption of a unique (privileged) and complete partition of the state-space of possible events. This is tantamount to assuming that we know all possible outcomes or alternatives in advance of making a decision, but it is clear that there are many practical situations in prediction, diagnosis, and decision-making where such partitions are contestable and/or incomplete. The paper begins by surveying the (...) impact of partitions on the choice of priors in formal probabilistic updating frameworks, and on human subjective probability judgements. That material is followed by an overview of strategies for dealing with partition dependence, including considerations of how a rational agent's preferences may determine the choice of a partition. (shrink)

This is a position paper concerning the role of empirical studies of human default reasoning in the formalization of AI theories of default reasoning. We note that AI motivates its theoretical enterprise by reference to human skill at default reasoning, but that the actual research does not make any use of this sort of information and instead relies on intuitions of individual investigators. We discuss two reasons theorists might not consider human performance relevant to formalizing default reasoning: (a) that intuitions (...) are sufficient to describe a model, and (b) that human performance in this arena is irrelevant to a competence model of the phenomenon. We provide arguments against both these reasons. We then bring forward three further considerations against the use of intuitions in this arena: (a) it leads to an unawareness of predicate ambiguity, (b) it presumes an understanding of ordinary language statements of typicality, and (c) it is similar to discredited views in other fields. We advocate empirical investigation of the range of human phenomena that intuitively embody default reasoning. Gathering such information would provide data with which to generate formal default theories and against which to test the claims of proposed theories. Our position is that such data are the very phenomena that default theories are supposed to explain. (shrink)

Under certain conditions private information can be a source of trade. Arbitrage for instance can occur as a result of the existence of private information. In this paper we want to explicitly model information. To do so we define an ‘information function’. This information function is a mathematical object, also known as a so called ‘wave function’. We use the definition of wave function as it is used in quantum mechanics and we attempt to show the usefulness of this wave (...) function in an economic context. We attempt to answer the following questions. How does the information function relate to private information? How can we use the information function to define the ‘quantity’ of information? How can we use the information function in arbitrage-based option pricing? How can the information function be used in the formulation of a so called Universal Brownian motion? (shrink)

Recent evidence suggests that experienced events are often mapped to too many episodic states, including those that are logically or experimentally incompatible with one another. For example, episodic over-distribution patterns show that the probability of accepting an item under different mutually exclusive conditions violates the disjunction rule. A related example, called subadditivity, occurs when the probability of accepting an item under mutually exclusive and exhaustive instruction conditions sums to a number >1. Both the over-distribution effect and subadditivity have been widely (...) observed in item and source-memory paradigms. These phenomena are difficult to explain using standard memory frameworks, such as signal-detection theory. A dual-trace model called the over-distribution model can explain the episodic over-distribution effect, but not subadditivity. Our goal is to develop a model that can explain both effects. In this paper, we propose the Generalized Quantum Episodic Memory model, which extends the Quantum Episodic Memory model developed by Brainerd, Wang, and Reyna. We test GQEM by comparing it to the OD model using data from a novel item-memory experiment and a previously published source-memory experiment examining the over-distribution effect. Using the best-fit parameters from the over-distribution experiments, we conclude by showing that the GQEM model can also account for subadditivity. Overall these results add to a growing body of evidence suggesting that quantum probability theory is a valuable tool in modeling recognition memory. (shrink)

We propose a theory that relates perceived evidence to numerical probability judgment. The most successful prior account of this relation is Support Theory, advanced in Tversky and Koehler. Support Theory, however, implies additive probability estimates for binary partitions. In contrast, superadditivity has been documented in Macchi, Osherson, and Krantz, and both sub- and superadditivity appear in the experiments reported here. Nonadditivity suggests asymmetry in the processing of focal and nonfocal hypotheses, even within binary partitions. We extend Support Theory by revising (...) its basic equation to allow such asymmetry, and compare the two equations’ ability to predict numerical assessments of probability from scaled estimates of evidence for and against a given proposition. Both between- and within-subject experimental designs are employed for this purpose. We find that the revised equation is more accurate than the original Support Theory equation. The implications of asymmetric processing on qualitative assessments of chance are also briefly discussed. (shrink)