Behaviour norms are considered for decision trees which allow both objective probabilities and uncertain states of the world with unknown probabilities. Terminal nodes have consequences in a given domain. Behaviour is required to be consistent in subtrees. Consequentialist behaviour, by definition, reveals a consequence choice function independent of the structure of the decision tree. It implies that behaviour reveals a revealed preference ordering satisfying both the independence axiom and a novel form of sure-thing principle. Continuous consequentialist behaviour must be expected (...) utility maximizing. Other plausible assumptions then imply additive utilities, subjective probabilities, and Bayes' rule. (shrink)

A general two-stage theory of human inference is proposed. A distinction is drawn between heuristic processes which select items of task information as ‘relevant’, and analytic processes which operate on the selected items to generate inferences or judgements. These two stages are illustrated in a selective review of work on both deductive and statistical reasoning. Factors identified as contributing to heuristic selection include perceptual salience, linguistic suppositions and semantic associations. Analytic processes are considered to be context dependent: people reason from (...) experience, not from inference rules. The paper includes discussion of the theory in comparison with other contemporary theories of human inference, and in relation to the current debate about human rationality. (shrink)

We propose that people typically reason about realistic situations using neither content-free syntactic inference rules nor representations of specific experiences. Rather, people reason using knowledge structures that we term pragmatic reasoning schemas, which are generalized sets of rules defined in relation to classes of goals. Three experiments examined the impact of a “permission schema” on deductive reasoning. Experiment 1 demonstrated that by evoking the permission schema it is possible to facilitate performance in Wason's selection paradigm for subjects who have had (...) no experience with the specific content of the problems. Experiment 2 showed that a selection problem worded in terms of an abstract permission elicited better performance than one worded in terms of a concrete but arbitrary situation, providing evidence for an abstract permission schema that is free of domain-specific content. Experiment 3 provided evidence that evocation of a permission schema affects not only tasks requiring procedural knowledge, but also a linguistic rephrasing task requiring declarative knowledge. In particular, statements in the form if p then q were rephrased into the form p only if q with greater frequency for permission than for arbitrary statements, and rephrasings of permission statements produced a pattern of introduction of modals totally unlike that observed for arbitrary conditional statements. Other pragmatic schemas, such as “causal” and “evidence” schemas can account for both linguistic and reasoning phenomena that alternative hypotheses fail to explain. (shrink)

Subjects were requested to choose between gambles, where the outcome of one gamble depended on a single elementary event, and the other depended on an event compounded of a series of such elementary events. The data supported the hypothesis that the subjective probability of a compound event is systematically biased in the direction of the probability of its components resulting in overestimation of conjunctive events and underestimation of disjunctive events. Studies pertaining to this topic are discussed.

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