This article described three heuristics that are employed in making judgements under uncertainty: representativeness, which is usually employed when people are asked to judge the probability that an object or event A belongs to class or process B; availability of instances or scenarios, which is often employed when people are asked to assess the frequency of a class or the plausibility of a particular development; and adjustment from an anchor, which is usually employed in numerical prediction when a relevant value (...) is available. These heuristics are highly economical and usually effective, but they lead to systematic and predictable errors. A better understanding of these heuristics and of the biases to which they lead could improve judgements and decisions in situations of uncertainty. (shrink)

Stocks and flows are building blocks of dynamic systems: Stocks change through inflows and outflows, such as our bank balance changing with withdrawals and deposits, or atmospheric CO2 with absorptions and emissions. However, people make systematic errors when trying to infer the behavior of dynamic systems, termed SF failure, whose cognitive explanations are yet unknown. We argue that SF failure appears when people focus on specific system elements, rather than on the system structure and gestalt. Using a standard SF task, (...) SF failure decreased by a global as opposed to local task format; individual global as opposed to local processing styles; and global as opposed to local perceptual priming. These results converge toward local processing as an explanation for SF failure. We discuss theoretical and practical implications on the connections between the scope of attention and understanding of dynamic systems. (shrink)

We analyze the dynamics of repeated interaction of two players in the Prisoner's Dilemma under various levels of interdependency information and propose an instance-based learning cognitive model to explain how cooperation emerges over time. Six hypotheses are tested regarding how a player accounts for an opponent's outcomes: the selfish hypothesis suggests ignoring information about the opponent and utilizing only the player's own outcomes; the extreme fairness hypothesis weighs the player's own and the opponent's outcomes equally; the moderate fairness hypothesis weighs (...) the opponent's outcomes less than the player's own outcomes to various extents; the linear increasing hypothesis increasingly weighs the opponent's outcomes at a constant rate with repeated interactions; the hyperbolic discounting hypothesis increasingly and nonlinearly weighs the opponent's outcomes over time; and the dynamic expectations hypothesis dynamically adjusts the weight a player gives to the opponent's outcomes, according to the gap between the expected and the actual outcomes in each interaction. When players lack explicit feedback about their opponent's choices and outcomes, results are consistent with the selfish hypothesis; however, when this information is made explicit, the best predictions result from the dynamic expectations hypothesis. (shrink)

A major challenge for research in artificial intelligence is to develop systems that can infer the goals, beliefs, and intentions of others (i.e., systems that have theory of mind, ToM). In this research, we propose a cognitive ToM framework that uses a well-known theory of decisions from experience to construct a computational representation of ToM. Instance-based learning theory (IBLT) is used to construct a cognitive model that generates ToM from the observation of other agents' behavior. The IBL model of the (...) observer distinguishes itself from previous models of ToM that make unreasonable assumptions about human cognition, are hand-crafted for particular settings, complex, or unable to explain a cognitive development of ToM compared to human's ToM. The IBL model learns from the observation of goal-directed agents' behavior in a gridworld navigation task, and it infers and predicts the behaviors of the agents in new gridworlds across different degrees of decision complexity in similar ways to the way human observers do. We provide evidence for the alignment of the IBL observer's predictions under various levels of decision complexity. We also advance the demonstration of the IBL predictions using a classic test of false beliefs (the Sally–Anne test), which is commonly used to test ToM in humans. We discuss our results and the potential of the IBL observer model to improve human–machine interactions. (shrink)

The purpose of cognitive models is to make predictive simulations of human behaviour, but this is often done at the aggregate level. Cranford, Gonzalez, Aggarwal, Cooney, Tambe, and Lebiere show that they can automatically customize a model to a particular individual on‐the‐fly, and use it to make specific predictions about their next actions, in the context of a particular cybersecurity game.

Stock-flow failure is a reasoning error in dynamic systems that has great societal relevance: people misjudge a level of accumulation considering the information on flows that increase or decrease over time. Many interventions, including the use of analogies and graphical manipulations, to counteract this failure and help people integrate the flow information have been tested with little or no success. We suggest that this error relates to the valence of a problem: the framing of the inflow or outflow direction as (...) “good” or “bad” is associated with the direction of its accumulation over time. To explore the effects of valence on accumulation judgments, we employ a scenario of a common health problem: blood glucose control through sugar consumption and insulin flows. We also investigate improvements of performance in a second scenario that result after viewing a video of a dynamic system demonstrating the effects of the correct accumulation trend. We discuss the implications of our findings for the blood glucose example and other global problems. (shrink)

This paper presents a learning theory pertinent to dynamic decision making (DDM) called instancebased learning theory (IBLT). IBLT proposes five learning mechanisms in the context of a decision‐making process: instance‐based knowledge, recognition‐based retrieval, adaptive strategies, necessity‐based choice, and feedback updates. IBLT suggests in DDM people learn with the accumulation and refinement of instances, containing the decision‐making situation, action, and utility of decisions. As decision makers interact with a dynamic task, they recognize a situation according to its similarity to past instances, (...) adapt their judgment strategies from heuristic‐based to instance‐based, and refine the accumulated knowledge according to feedback on the result of their actions. The IBLT's learning mechanisms have been implemented in an ACT‐R cognitive model. Through a series of experiments, this paper shows how the IBLT's learning mechanisms closely approximate the relative trend magnitude and performance of human data. Although the cognitive model is bounded within the context of a dynamic task, the IBLT is a general theory of decision making applicable to other dynamic environments. (shrink)

The majority of people show persistent poor performance in reasoning about “stock-flow problems” in the laboratory. An important example is the failure to understand the relationship between the “stock” of CO2 in the atmosphere, the “inflow” via anthropogenic CO2 emissions, and the “outflow” via natural CO2 absorption. This study addresses potential causes of reasoning failures in the CO2 accumulation problem and reports two experiments involving a simple re-framing of the task as managing an analogous financial budget. In Experiment 1 a (...) financial version of the task that required participants to think in terms of controlling debt demonstrated significant improvements compared to a standard CO2 accumulation problem. Experiment 2, in which participants were invited to think about managing savings, suggested that this improvement was fortuitous and coincidental rather than due to a fundamental change in understanding the stock-flow relationships. The role of graphical information in aiding or abetting stock-flow reasoning was also explored in both experiments, with the results suggesting that graphs do not always assist understanding. The potential for leveraging the kind of reasoning exhibited in such tasks in an effort to change people's willingness to reduce CO2 emissions is briefly discussed. (shrink)

Corrigendum to "Exploration and exploitation during information search and consequential choice".