In the international bestseller, Thinking, Fast and Slow, Daniel Kahneman, the renowned psychologist and winner of the Nobel Prize in Economics, takes us on a groundbreaking tour of the mind and explains the two systems that drive the way we think. System 1 is fast, intuitive, and emotional; System 2 is slower, more deliberative, and more logical. The impact of overconfidence on corporate strategies, the difficulties of predicting what will make us happy in the future, the profound effect of cognitive (...) biases on everything from playing the stock market to planning our next vacation—each of these can be understood only by knowing how the two systems shape our judgments and decisions. -/- Engaging the reader in a lively conversation about how we think, Kahneman reveals where we can and cannot trust our intuitions and how we can tap into the benefits of slow thinking. He offers practical and enlightening insights into how choices are made in both our business and our personal lives—and how we can use different techniques to guard against the mental glitches that often get us into trouble. Winner of the National Academy of Sciences Best Book Award and the Los Angeles Times Book Prize and selected by The New York Times Book Review as one of the ten best books of 2011, Thinking, Fast and Slow is destined to be a classic. (shrink)

Current psychology of human reasoning is divided into several different approaches. For instance, there is a major dispute over the question whether human beings are able to apply norms of the formal models of rationality such as rules of logic, or probability and decision theory, correctly. While researchers following the “heuristics and biases” approach argue that we deviate systematically from these norms, and so are perhaps deeply irrational, defenders of the “bounded rationality” approach think not only that the evidence for (...) this conclusion is problematic but also that we should not, at least not very often, use formal norms in reasoning. I argue that while the evidence for heuristics and biases is indeed questionable, the bounded rationality approach has its limits too. Most especially, we should not infer that formal norms play no role in a comprehensive theory of rationality. Instead, formal and bounded rules of reasoning might even be connected in a more comprehensive theory of rationality. (shrink)

In the late summer of 1998, the authors, a cognitive scientist and a logician, started talking about the relevance of modern mathematical logic to the study of human reasoning, and we have been talking ever since. This book is an interim report of that conversation. It argues that results such as those on the Wason selection task, purportedly showing the irrelevance of formal logic to actual human reasoning, have been widely misinterpreted, mainly because the picture of logic current in psychology (...) and cognitive science is completely mistaken. We aim to give the reader a more accurate picture of mathematical logic and, in doing so, hope to show that logic, properly conceived, is still a very helpful tool in cognitive science. The main thrust of the book is therefore constructive. We give a number of examples in which logical theorizing helps in understanding and modeling observed behavior in reasoning tasks, deviations of that behavior in a psychiatric disorder (autism), and even the roots of that behavior in the evolution of the brain. (shrink)

Humans and animals make inferences about the world under limited time and knowledge. In contrast, many models of rational inference treat the mind as a Laplacean Demon, equipped with unlimited time, knowledge, and computational might. Following H. Simon's notion of satisficing, the authors have proposed a family of algorithms based on a simple psychological mechanism: one-reason decision making. These fast and frugal algorithms violate fundamental tenets of classical rationality: They neither look up nor integrate all information. By computer simulation, the (...) authors held a competition between the satisficing "Take The Best" algorithm and various "rational" inference procedures. The Take The Best algorithm matched or outperformed all competitors in inferential speed and accuracy. This result is an existence proof that cognitive mechanisms capable of successful performance in the real world do not need to satisfy the classical norms of rational inference. (shrink)

Considers that intuitive predictions follow a judgmental heuristic-representativeness. By this heuristic, people predict the outcome that appears most representative of the evidence. Consequently, intuitive predictions are insensitive to the reliability of the evidence or to the prior probability of the outcome, in violation of the logic of statistical prediction. The hypothesis that people predict by representativeness was supported in a series of studies with both naive and sophisticated university students. The ranking of outcomes by likelihood coincided with the ranking by (...) representativeness, and Ss erroneously predicted rare events and extreme values if these happened to be representative. The experience of unjustified confidence in predictions and the prevalence of fallacious intuitions concerning statistical regression are traced to the representativeness heuristic. (shrink)

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)

Neoclassical economics assumes that individuals have stable and context-independent preferences, and uses preference satisfaction as a normative criterion. By calling this assumption into question, behavioural findings cause fundamental problems for normative economics. A common response to these problems is to treat deviations from conventional rational choice theory as mistakes, and to try to reconstruct the preferences that individuals would have acted on, had they reasoned correctly. We argue that this preference purification approach implicitly uses a dualistic model of the human (...) being, in which an inner rational agent is trapped in an outer psychological shell. This model is psychologically and philosophically problematic. (shrink)

From the O.J. Simpson verdict to peace-making in the Balkans, the critical role of human judgement--complete with its failures, flaws, and successes--has never been more hotly debated and analyzed than it is today. This landmark work examines the dynamics of judgement and its impact on events that take place in human society, which require the direction and control of social policy. Research on social policy typically focuses on content. This book concentrates instead on the decision-making process itself. Drawing on 50 (...) years of empirical research in decision theory, Hammond examines the possibilities for wisdom and cognitive competence in the formation of social policies, and applies these lessons to specific examples, such as the space shuttle Challenger disaster and the health care debate. Uncertainly, he tells us, can seldom be fully eliminated; thus error is inevitable, and injustice for some unavoidable. But the capacity for make wise judgments increases to the extent that we understand the potential pitfalls and their origin. The judgment process for example involves an ongoing rivalry between intuition and analysis, accuracy and rationality. The source of this tension requires an examination of the evolutionary roots of human judgement and how these fundamental features may be changing as our civilization increasingly becomes an information and knowledge-based society. With numerous examples from law, medicine, engineering, and economics, the author dramatizes the importance of judgment and its role in the formation of social policies which affect us all, and issues the first comprehensive examination of its underlying dynamics. (shrink)

Abstract:This paper explores the contrast between mentalistic and behaviouristic interpretations of decision theory. The former regards credences and utilities as psychologically real, while the latter regards them as mere representations of an agent's preferences. Philosophers typically adopt the former interpretation, economists the latter. It is argued that the mentalistic interpretation is preferable if our aim is to use decision theory for descriptive purposes, but if our aim is normative then the behaviouristic interpretation cannot be dispensed with.

Many philosophers hold that the probability axioms constitute norms of rationality governing degrees of belief. This view, known as subjective Bayesianism, has been widely criticized for being too idealized. It is claimed that the norms on degrees of belief postulated by subjective Bayesianism cannot be followed by human agents, and hence have no normative force for beings like us. This problem is especially pressing since the standard framework of subjective Bayesianism only allows us to distinguish between two kinds of credence (...) functions—coherent ones that obey the probability axioms perfectly, and incoherent ones that don’t. An attractive response to this problem is to extend the framework of subjective Bayesianism in such a way that we can measure differences between incoherent credence functions. This lets us explain how the Bayesian ideals can be approximated by humans. I argue that we should look for a measure that captures what I call the ‘overall degree of incoherence’ of a credence function. I then examine various incoherence measures that have been proposed in the literature, and evaluate whether they are suitable for measuring overall incoherence. The competitors are a qualitative measure that relies on finding coherent subsets of incoherent credence functions, a class of quantitative measures that measure incoherence in terms of normalized Dutch book loss, and a class of distance measures that determine the distance to the closest coherent credence function. I argue that one particular Dutch book measure and a corresponding distance measure are particularly well suited for capturing the overall degree of incoherence of a credence function. (shrink)

The purpose of this paper is to examine the normative interpretation of the fast-and-frugal research program and in particular to contrast it with the normative reading of rational choice theory and behavioral economics. The ecological rationality of fast-and-frugal heuristics is admittedly a form of normative naturalism – it derives what agents “ought” to do from that which “is” ecologically rational – and the paper will examine how this differs from the normative rationality associated with rational choice theory. I will also (...) attempt to assess the relative adequacy of normative ecological rationality. (shrink)

In “Internalism and Externalism,” Laurence BonJour suggests that the contemporary epistemological debate over internalism and externalism concerns the formulation of the justification or warrant condition in an account of knowledge. The internalist requires that for a belief to meet this condition, all of the necessary elements must be cognitively accessible to the believer, whereas the externalist claims that at least some such elements do not need to be accessible to the believer. BonJour gives an overview of this dispute. He suggests (...) that the opposition between the two views is less straightforward than has usually been thought. He proposes, in addition, that each of them has valuable roles to play in major epistemological issues, even though the internalist approach is more fundamental in an important way. (shrink)

Many cognitive scientists, having discovered that some computational-level characterization f of a cognitive capacity φ is intractable, invoke heuristics as algorithmic-level explanations of how cognizers compute f. We argue that such explanations are actually dysfunctional, and rebut five possible objections. We then propose computational-level theory revision as a principled and workable alternative.

Ken Hammond has been an influential figure in the study of decision making; with this book, he aims to show why mistaken judgments happen, how to make better decisions, and how to understand the thought modes operating in the political process.

Classic analysis of the subject and the development of personal probability; one of the greatest controversies in modern statistcal thought.

In his debates with Daniel Kahneman and Amos Tversky, Gerd Gigerenzer puts forward a stricter standard for the proper representation of judgment heuristics. I argue that Gigerenzer’s stricter standard contributes to naturalized epistemology in two ways. First, Gigerenzer’s standard can be used to winnow away cognitive processes that are inappropriately characterized and should not be used in the epistemic evaluation of belief. Second, Gigerenzer’s critique helps to recast the generality problem in naturalized epistemology and cognitive psychology as the methodological problem (...) of identifying criteria for the appropriate specification and characterization of cognitive processes in psychological explanations. I conclude that naturalized epistemologists seeking to address the generality problem should turn their focus to methodological questions about the proper characterization of cognitive processes for the purposes of psychological explanation. (shrink)

A compact, coherent introduction to the study of rational belief, this text provides points of entry to such areas of philosophy as theory of knowledge, methodology of science, and philosophy of language. The book is accessible to all undergraduates and presupposes no philosophical training.

This article reviews the transition between post-Fregean anti-naturalistic epistemology and contemporary naturalistic epistemologies. It traces the revival of naturalism to Quine’s critique of the "a priori", and Kuhn’s defense of historicism, and use the arguments of Quine and Kuhn to identify a position, "traditional naturalism", that combines naturalistic themes with the claim that epistemology is a normative enterprise. Pleas for more radical versions of naturalism are articulated, and briefly confronted.

Since Edmund L. Gettier reminded us recently of a certain important inadequacy of the traditional analysis of "S knows that p," several attempts have been made to correct that analysis. In this paper I shall offer still another analysis (or a sketch of an analysis) of "S knows that p," one which will avert Gettier's problem. My concern will be with knowledge of empirical propositions only, since I think that the traditional analysis is adequate for knowledge of nonempirical truths.

Consequence is at the heart of logic; an account of consequence, of what follows from what, offers a vital tool in the evaluation of arguments. Since philosophy itself proceeds by way of argument and inference, a clear view of what logical consequence amounts to is of central importance to the whole discipline. In this book JC Beall and Greg Restall present and defend what thay call logical pluralism, the view that there is more than one genuine deductive consequence relation, a (...) position which has profound implications for many linguists as well as for philosophers. We should not search for one true logic, since there are many. (shrink)

It is widely held that Bayesian decision theory is the final word on how a rational person should make decisions. However, Leonard Savage--the inventor of Bayesian decision theory--argued that it would be ridiculous to use his theory outside the kind of small world in which it is always possible to "look before you leap." If taken seriously, this view makes Bayesian decision theory inappropriate for the large worlds of scientific discovery and macroeconomic enterprise. When is it correct to use Bayesian (...) decision theory--and when does it need to be modified? Using a minimum of mathematics, Rational Decisions clearly explains the foundations of Bayesian decision theory and shows why Savage restricted the theory's application to small worlds. The book is a wide-ranging exploration of standard theories of choice and belief under risk and uncertainty. Ken Binmore discusses the various philosophical attitudes related to the nature of probability and offers resolutions to paradoxes believed to hinder further progress. In arguing that the Bayesian approach to knowledge is inadequate in a large world, Binmore proposes an extension to Bayesian decision theory--allowing the idea of a mixed strategy in game theory to be expanded to a larger set of what Binmore refers to as "muddled" strategies. Written by one of the world's leading game theorists, Rational Decisions is the touchstone for anyone needing a concise, accessible, and expert view on Bayesian decision making. (shrink)

This is a discussion of the problem of extending the basic AGM belief revision theory to iterated belief revision: the problem of formulating rules, not only for revising a basic belief state in response to potential new information, but also for revising one’s revision rules in response to potential new information. The emphasis in the paper is on foundational questions about the nature of and motivation for various constraints, and about the methodology of the evaluation of putative counterexamples to proposed (...) constraints. Some specific constraints that have been proposed are criticized. The paper emphasizes the importance of meta-information—information about one’s sources of information—and argues that little of substance can be said about constraints on iterated belief revision at a level of abstraction that lacks the resources for explicit representation of meta-information. (shrink)

There are two prominent viewpoints regarding the nature of rationality and how it should be evaluated in situations of interest: the traditional axiomatic approach and the newer ecological rationality. An obstacle to comparing and evaluating these seemingly opposite approaches is that they employ different language and formalisms, ask different questions, and are at different stages of development. I adapt a formal framework known as SCOP to address this problem by providing a comprehensive common framework in which both approaches may be (...) defined and compared. The main result is that the axiomatic and ecological approaches are in far greater agreement on fundamental issues than has been appreciated; this is supported by a pair of theorems to the effect that they will make accordant rationality judgements when forced to evaluate the same situation. I conclude that ecological rationality has some subtle advantages, but that we should move past the issues currently dominating the discussion of rationality. (shrink)

It is widely held that Bayesian decision theory is the final word on how a rational person should make decisions. However, Leonard Savage--the inventor of Bayesian decision theory--argued that it would be ridiculous to use his theory outside the kind of small world in which it is always possible to "look before you leap." If taken seriously, this view makes Bayesian decision theory inappropriate for the large worlds of scientific discovery and macroeconomic enterprise. When is it correct to use Bayesian (...) decision theory--and when does it need to be modified? Using a minimum of mathematics, Rational Decisions clearly explains the foundations of Bayesian decision theory and shows why Savage restricted the theory's application to small worlds. The book is a wide-ranging exploration of standard theories of choice and belief under risk and uncertainty. Ken Binmore discusses the various philosophical attitudes related to the nature of probability and offers resolutions to paradoxes believed to hinder further progress. In arguing that the Bayesian approach to knowledge is inadequate in a large world, Binmore proposes an extension to Bayesian decision theory--allowing the idea of a mixed strategy in game theory to be expanded to a larger set of what Binmore refers to as "muddled" strategies. Written by one of the world's leading game theorists, Rational Decisions is the touchstone for anyone needing a concise, accessible, and expert view on Bayesian decision making. (shrink)

This paper extends earlier work by its authors on formal aspects of the processes of contracting a theory to eliminate a proposition and revising a theory to introduce a proposition. In the course of the earlier work, Gardenfors developed general postulates of a more or less equational nature for such processes, whilst Alchourron and Makinson studied the particular case of contraction functions that are maximal, in the sense of yielding a maximal subset of the theory (or alternatively, of one of (...) its axiomatic bases), that fails to imply the proposition being eliminated. In the present paper, the authors study a broader class, including contraction functions that may be less than maximal. Specifically, they investigate "partial meet contraction functions", which are defined to yield the intersection of some nonempty family of maximal subsets of the theory that fail to imply the proposition being eliminated. Basic properties of these functions are established: it is shown in particular that they satisfy the Gardenfors postulates, and moreover that they are sufficiently general to provide a representation theorem for those postulates. Some special classes of partial meet contraction functions, notably those that are "relational" and "transitively relational", are studied in detail, and their connections with certain "supplementary postulates" of Gardenfors investigated, with a further representation theorem established. (shrink)

This article provides a brief selective overview and discussion of recent research into natural language argumentation that may inform the study of human reasoning on the assumption that an episode of argumentation issues an invitation to accept a corresponding inference. As this research shows, arguers typically seek to establish new consequences based on prior information. And they typically do so vis-à-vis a real or an imagined opponent, or an opponent-position, in ways that remain sensitive to considerations of context, audiences, and (...) goals. Deductively valid inferences remain a limiting case of such reasoning. In view of these insights, it may appear less surprising that allegedly “irrational” behavior can regularly be produced in experimental settings that expose subjects to standardized reasoning tasks. (shrink)

The paper argues that much of the difficulty with making progress on the issue of the normativity of logic for thought, as discussed in the literature, stems from a misapprehension of what logic is normative for. The claim is that, rather than mono-agent mental processes, logic in fact comprises norms for quite specific situations of multi-agent dialogical interactions, in particular special forms of debates. This reconceptualization is inspired by historical developments in logic and mathematics, in particular the pervasiveness of such (...) dialogical conceptions in the early days of logic in ancient Greece. The multi-agent, dialogical perspective then allows for the formulation of compelling 'bridge principles’ between the relation of logical consequence and dialogical normative principles, something that is notoriously difficult to achieve in a mono-agent setting pertaining exclusively to thought and belief. The upshot is also that the truth-preserving rules of logic generally do not have a primary normative bearing on mono-agent mental processes, and in this sense the paper sides with Harman's critique of the idea that logic has a normative import for thought and belief. (shrink)

Probabilistic coherence is not an absolute requirement of rationality; nevertheless, it is an ideal of rationality with substantive normative import. An idealized rational agent who avoided making implicit logical errors in forming his preferences would be coherent. In response to the challenge, recently made by epistemologists such as Foley and Plantinga, that appeals to ideal rationality render probabilism either irrelevant or implausible, I argue that idealized requirements can be normatively relevant even when the ideals are unattainable, so long as they (...) define a structure that links imperfect and perfect rationality in a way that enables us to make sense of the notion of better approximations to the ideal. I then analyze the notion of approximation to the ideal of coherence by developing a generalized theory of belief functions that allows for incoherence, and showing how such belief functions can be ordered with regard to greater or lesser coherence. (shrink)

This paper focuses on tacit versus explicit uses of plural performance metrics as a primary methodological characteristic. This characteristic usefully distinguishes two schools of normative analysis and their approaches to normative interpretations of bounded rationality. Both schools of thought make normative claims about bounded rationality by comparing the performance of decision procedures using more than one performance metric. The consistency school makes tacit reference to performance metrics outside its primary axiomatic framework, but lexicographically promotes internal axiomatic consistency as the primary, (...) and in most cases sufficient, normative outcome with which to undertake welfare comparisons. The consistency school's axiomatization program, in both neoclassical and behavioral forms, pre-commits to welfare interpretations that follow a hierarchy of rationalities based on the stringency of restrictions that different axiomatizations impose on choice data. In contrast, the ecological rational.. (shrink)

The paper surveys some recent work on formal aspects of the logic of theory change. It begins with a general discussion of the intuitive processes of contraction and revision of a theory, and of differing strategies for their formal study. Specific work is then described, notably Gärdenfors'' postulates for contraction and revision, maxichoice contraction and revision functions and the condition of orderliness, partial meet contraction and revision functions and the condition of relationality, and finally the operations of safe contraction and (...) revision. Verifications and proofs are omitted, with references given to the literature, but definitions and principal results are presented with rigour, along with discussion of their significance. (shrink)