We have been oversold on the base rate fallacy in probabilistic judgment from an empirical, normative, and methodological standpoint. At the empirical level, a thorough examination of the base rate literature (including the famous lawyer–engineer problem) does not support the conventional wisdom that people routinely ignore base rates. Quite the contrary, the literature shows that base rates are almost always used and that their degree of use depends on task structure and representation. Specifically, base rates play a relatively larger role (...) in tasks where base rates are implicitly learned or can be represented in frequentist terms. Base rates are also used more when they are reliable and relatively more diagnostic than available individuating information. At the normative level, the base rate fallacy should be rejected because few tasks map unambiguously into the narrow framework that is held up as the standard of good decision making. Mechanical applications of Bayes's theorem to identify performance errors are inappropriate when (1) key assumptions of the model are either unchecked or grossly violated, and (2) no attempt is made to identify the decision maker's goals, values, and task assumptions. Methodologically, the current approach is criticized for its failure to consider how the ambiguous, unreliable, and unstable base rates of the real world are and should be used. Where decision makers' assumptions and goals vary, and where performance criteria are complex, the traditional Bayesian standard is insufficient. Even where predictive accuracy is the goal in commonly defined problems, there may be situations (e.g., informationally redundant environments) in which base rates can be ignored with impunity. A more ecologically valid research program is called for. This program should emphasize the development of prescriptive theory in rich, realistic decision environments. (shrink)

'The Probabilistic Mind' is a follow-up to the influential and highly cited 'Rational Models of Cognition'. It brings together developments in understanding how, and how far, high-level cognitive processes can be understood in rational terms, and particularly using probabilistic Bayesian methods.

The book can also be used as an excellent text for graduate-level courses in AI, operations research, or applied probability.

Causality offers the first comprehensive coverage of causal analysis in many sciences, including recent advances using graphical methods. Pearl presents a unified account of the probabilistic, manipulative, counterfactual and structural approaches to causation, and devises simple mathematical tools for analyzing the relationships between causal connections, statistical associations, actions and observations. The book will open the way for including causal analysis in the standard curriculum of statistics, artificial intelligence, business, epidemiology, social science and economics.

Remarkable progress in the mathematics and computer science of probability has led to a revolution in the scope of probabilistic models. In particular, ‘sophisticated’ probabilistic methods apply to structured relational systems such as graphs and grammars, of immediate relevance to the cognitive sciences. This Special Issue outlines progress in this rapidly developing field, which provides a potentially unifying perspective across a wide range of domains and levels of explanation. Here, we introduce the historical and conceptual foundations of the approach, explore (...) how the approach relates to studies of explicit probabilistic reasoning, and give a brief overview of the field as it stands today. (shrink)

A Bayesian network (BN) is a graphical model of uncertainty that is especially well suited to legal arguments. It enables us to visualize and model dependencies between different hypotheses and pieces of evidence and to calculate the revised probability beliefs about all uncertain factors when any piece of new evidence is presented. Although BNs have been widely discussed and recently used in the context of legal arguments, there is no systematic, repeatable method for modeling legal arguments as BNs. Hence, where (...) BNs have been used in the legal context, they are presented as completed pieces of work, with no insights into the reasoning and working that must have gone into their construction. This means the process of building BNs for legal arguments is ad hoc, with little possibility for learning and process improvement. This article directly addresses this problem by describing a method for building useful legal arguments in a consistent and repeatable way. The method complements and extends recent work by Hepler, Dawid, and Leucari (2007) on object-oriented BNs for complex legal arguments and is based on the recognition that such arguments can be built up from a small number of basic causal structures (referred to as idioms). We present a number of examples that demonstrate the practicality and usefulness of the method. (shrink)

A normative framework for modeling causal and counterfactual reasoning has been proposed by Spirtes, Glymour, and Scheines. The framework takes as fundamental that reasoning from observation and intervention differ. Intervention includes actual manipulation as well as counterfactual manipulation of a model via thought. To represent intervention, Pearl employed the do operator that simplifies the structure of a causal model by disconnecting an intervened-on variable from its normal causes. Construing the do operator as a psychological function affords predictions about how people (...) reason when asked counterfactual questions about causal relations that we refer to as undoing, a family of effects that derive from the claim that intervened-on variables become independent of their normal causes. Six studies support the prediction for causal arguments but not consistently for parallel conditional ones. Two of the studies show that effects are treated as diagnostic when their values are observed but nondiagnostic when they are intervened on. These results cannot be explained by theories that do not distinguish interventions from other sorts of events. (shrink)

In most cases, rule-governed relations and similarity relations can indeed be distinguished by the number of relevant features they require. This criterion is not sufficient, however, to explain other properties of the relations that have a more dichotomous character. I focus on the differential drive for consistency by inferential processes that draw on the two types of relations.

For more than 20 years, research has proven the beneficial effect of natural frequencies when it comes to solving Bayesian reasoning tasks (Gigerenzer & Hoffrage, 1995). In a recent meta-analysis, McDowell & Jacobs (2017) showed that presenting a task in natural frequency format increases performance rates to 24% compared to only 4% when the same task is presented in probability format. Nevertheless, on average three quarters of participants in their meta-analysis failed to obtain the correct solution for such a task (...) in frequency format. In this paper, we present an empirical study on what participants typically do wrong when confronted with natural frequencies. We found that many of them did not actually use natural frequencies for their calculations, but translated them back into complicated probabilities instead. This switch from the intuitive presentation format to a less intuitive calculation format will be discussed within the framework of psychological theories (e.g., the Einstellung effect). (shrink)