The thirty-five chapters in this book describe various judgmental heuristics and the biases they produce, not only in laboratory experiments but in important...

Conflicts of interest can lead experts to give biased and corrupt advice. Although disclosure is often proposed as a potential solution to these problems, we show that it can have perverse effects. First, people generally do not discount advice from biased advisors as much as they should, even when advisors’ conflicts of interest are disclosed. Second, disclosure can increase the bias in advice because it leads advisors to feel morally licensed and strategically encouraged to exaggerate their advice even further. As (...) a result, disclosure may fail to solve the problems created by conflicts of interest and may sometimes even make matters worse. (shrink)

People often fail to detect large changes to scenes, provided that the changes occur during a visual disruption. This phenomenon, known as ''change blindness,'' occurs both in the laboratory and in real-world situations in which changes occur unexpectedly. The pervasiveness of the inability to detect changes is consistent with the theoretical notion that we internally represent relatively little information from our visual world from one glance at a scene to the next. However, evidence for change blindness does not necessarily imply (...) the absence of such a representation-people could also miss changes if they fail to compare an existing representation of the pre-change scene to the post-change scene. In three experiments, we show that people often do have a representation of some aspects of the pre-change scene even when they fail to report the change. And, in fact, they appear to ''discover'' this memory and can explicitly report details of a changed object in response to probing questions. The results of these real-world change detection studies are discussed in the context of broader claims about change blindness. (shrink)

This collection explores the subject of conflicts of interest. It investigates how to manage conflicts of interest, how they can affect well-meaning professionals, and how they can limit the effectiveness of corporate boards, undermine professional ethics, and corrupt expert opinion. Legal and policy responses are considered, some of which (e.g., disclosure) are shown to backfire and even fail. The results offer a sobering prognosis for professional ethics and for anyone who relies on professionals who have conflicts of interest. The contributors (...) are leading authorities on the subject in the fields of law, medicine, management, public policy, and psychology. The nuances of the problems posedby conflicts of interest will be highlighted for readers in an effort to demonstrate the manyways that structuring incentives can affect decision making and organizations' financial well-being. (shrink)

Arien Mack and Irvin Rock make the radical claim that there is no conscious perception of the visual world without attention to it.

What can reason do for us and what can't it do? This is the question examined by Herbert A. Simon, who received the 1978 Nobel Prize in Economic Sciences "for his pioneering work on decision-making processes in economic organizations." The ability to apply reason to the choice of actions is supposed to be one of the defining characteristics of our species. In the first two chapters, the author explores the nature and limits of human reason, comparing and evaluating the major (...) theoretical frameworks that have been erected to explain reasoning processes. He also discusses the interaction of thinking and emotion in the choice of our actions. In the third and final chapter, the author applies the theory of bounded rationality to social institutions and human behavior, and points out the problems created by limited attention span human inability to deal with more than one difficult problem at a time. He concludes that we must recognize the limitations on our capabilities for rational choice and pursue goals that, in their tentativeness and flexibility, are compatible with those limits. (shrink)