Simple Heuristics That Make Us Smart invites readers to embark on a new journey into a land of rationality that differs from the familiar territory of cognitive science and economics. Traditional views of rationality tend to see decision makers as possessing superhuman powers of reason, limitless knowledge, and all of eternity in which to ponder choices. To understand decisions in the real world, we need a different, more psychologically plausible notion of rationality, and this book provides it. It is about (...) fast and frugal heuristics--simple rules for making decisions when time is pressing and deep thought an unaffordable luxury. These heuristics can enable both living organisms and artificial systems to make smart choices, classifications, and predictions by employing bounded rationality. But when and how can such fast and frugal heuristics work? Can judgments based simply on one good reason be as accurate as those based on many reasons? Could less knowledge even lead to systematically better predictions than more knowledge? Simple Heuristics explores these questions, developing computational models of heuristics and testing them through experiments and analyses. It shows how fast and frugal heuristics can produce adaptive decisions in situations as varied as choosing a mate, dividing resources among offspring, predicting high school drop out rates, and playing the stock market. As an interdisciplinary work that is both useful and engaging, this book will appeal to a wide audience. It is ideal for researchers in cognitive psychology, evolutionary psychology, and cognitive science, as well as in economics and artificial intelligence. It will also inspire anyone interested in simply making good decisions. (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)

This is the first textbook on pattern recognition to present the Bayesian viewpoint. The book presents approximate inference algorithms that permit fast approximate answers in situations where exact answers are not feasible. It uses graphical models to describe probability distributions when no other books apply graphical models to machine learning. No previous knowledge of pattern recognition or machine learning concepts is assumed. Familiarity with multivariate calculus and basic linear algebra is required, and some experience in the use of probabilities would (...) be helpful though not essential as the book includes a self-contained introduction to basic probability theory. (shrink)

This book explores a new approach to understanding the human mind - rational analysis - that regards thinking as a facility adapted to the structure of the world. This approach is most closely associated with the work of John R Anderson, who published the original book on rational analysis in 1990. Since then, a great deal of work has been carried out in a number of laboratories around the world, and the aim of this book is to bring this work (...) together for the benefit of the general psychological audience. The book contains chapters by some of the world's leading researchers in memory, categorisation, reasoning, and search, who show how the power of rational analysis can be applied to the central question of how humans think. It will be of interest to students and researchers in cognitive psychology, cognitive science, and animal behaviour. (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)

Shepard has argued that a universal law should govern generalization across different domains of perception and cognition, as well as across organisms from different species or even different planets. Starting with some basic assumptions about natural kinds, he derived an exponential decay function as the form of the universal generalization gradient, which accords strikingly well with a wide range of empirical data. However, his original formulation applied only to the ideal case of generalization from a single encountered stimulus to a (...) single novel stimulus, and for stimuli that can be represented as points in a continuous metric psychological space. Here we recast Shepard's theory in a more general Bayesian framework and show how this naturally extends his approach to the more realistic situation of generalizing from multiple consequential stimuli with arbitrary representational structure. Our framework also subsumes a version of Tversky's set-theoretic model of similarity, which is conventionally thought of as the primary alternative to Shepard's continuous metric space model of similarity and generalization. This unification allows us not only to draw deep parallels between the set-theoretic and spatial approaches, but also to significantly advance the explanatory power of set-theoretic models. Key Words: additive clustering; Bayesian inference; categorization; concept learning; contrast model; features; generalization; psychological space; similarity. (shrink)

Griffiths and Tenenbaum (2006) asked individuals to make predictions about the duration or extent of everyday events (e.g., cake baking times), and reported that predictions were optimal, employing Bayesian inference based on veridical prior distributions. Although the predictions conformed strikingly to statistics of the world, they reflect averages over many individuals. On the conjecture that the accuracy of the group response is chiefly a consequence of aggregating across individuals, we constructed simple, heuristic approximations to the Bayesian model premised on the (...) hypothesis that individuals have access merely to a sample of k instances drawn from the relevant distribution. The accuracy of the group response reported by Griffiths and Tenenbaum could be accounted for by supposing that individuals each utilize only two instances. Moreover, the variability of the group data is more consistent with this small‐sample hypothesis than with the hypothesis that people utilize veridical or nearly veridical representations of the underlying prior distributions. Our analyses lead to a qualitatively different view of how individuals reason from past experience than the view espoused by Griffiths and Tenenbaum. (shrink)