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Task 5
Task 5
Judgement
We often change our opinion of the likelihood of sth based on new info
often increases/decreases strength of our beliefs
Bayesian inference: form of statistical inference in which initial beliefs (prior probabilities) are modified by
evidence/experience to produce posterior probabilities
Bayes’ theorem: focused on situations in which there are two possible beliefs or hypotheses (e.g., X is lying vs. X is not
lying), and showed how new data or information change the probabilities of each hypothesis being correct
need to assess the relative probabilities of the two hypotheses before the data are obtained (prior odds). We also need
to calculate the relative probabilities of obtaining the observed data under each hypothesis (likelihood ratio).
Bayesian methods evaluate the probability of observing the data, D, if hypothesis A is correct, written p (D/H A), and if
hypothesis B is correct, written p (D/HB)
Left side: relative probabilities of hypotheses A & B in the light of the new data (probabilities
we want to work out)
Right side: prior odds of each hypothesis being correct before the data were collected
multiplied by the likelihood ratio based on the probability of the data given each hypothesis
Taxi-cab problem (Kahneman & Tversky): taxicab is involved in a hit-and-run accident one night; 85% taxicabs
belong to green company & 15% to blue company; due to prevalence of cabs from separate companies, the probability
taxi was blue is 41% and probability it was green is 59% (when combined with probability derived from ability of eye-
witness to identify cabs under appropriate visibility conditions)
Neglecting base rates
Base-rate information: relative frequency of an event within a given population
such info is often ignored
Taxicab example: base-rate info about relative numbers of Green & Blue cabs was ignored, focused mainly on
evidence of witness: 80% of the time she was right in identifying cab color, so they said probability cab is blue is
80%
we fail to use base-rate info bcs we use heuristics (cognitively un-demanding)
Tversky & Kahneman: Most ppl given judgement tasks make use of rules of thumb / heuristics (reduce effort, quick
decisions)
Intelligence & cognitive ability: unrelated to performance on most judgement tasks
Fast-and-frugal heuristics: involve rapid processing of relatively little information
When ppl do use base-rate info:
when they understand the underlying causal factors
when motivated to do so (ex: health problem; myside bias)
base-rate info sometimes relevant & generally used
we possess valuable causal knowledge that allows us to make accurate judgements using base-rate
information in everyday life → but in lab: judgement problems often fail to provide such knowledge
breast cancer experiment: if another cause was mentioned, participants were far more likely to take full
account of the base-rate info → corresponds to real life
Availability heuristic = assumption that frequencies of events can be estimated based on how easy/hard it is to retrieve
relevant info from LTM (ex: flight crash more probable than car crash)
Anchoring-and- = when someone makes an initial estimate (the anchor) & then adjusts it to produce a final
adjustment heuristic estimate, the adjustment is generally insufficient
Fast-and-frugal heuristics
Rapid processing of limited info
Take-the-best heuristic: key fast-and-frugal heuristic
take the best, ignore the rest
ex: deciding whether Cologne or Herne has larger population: assuming most valid cue is whose city names you
recognize; if both are recognized, you use another cue such as whether city has cathedral
Take-the-best strategy has 3 components:
1) Search rule – search cues (name recognition, cathedral) in decreasing order of validity
2) Stopping rule – stop after finding a discriminatory cue (cue applies to only one of possible answers)
3) Decision rule – choose outcome
Recognition heuristic: selecting the recognized object rather than the unrecognized one
How do ppl decide which heuristic to use on judgement/decision-making tasks?
two-step process
1. nature of task & individual’s memory limit the number of available heuristics
2. ppl select one heuristic based on the likely outcome of using it & its processing demands
Effective in spite of simplicity
Limitations:
Suggestion that we are always better off following intuitions and ‘gut feelings’ is not correct
Additional info being ignored is often wrong
Take-the-best strategy is used less often than suggested
→ use requires us to organize the various cues hierarchically based on their validity, but often we lack knowledge of cue
validities
→ cues used by individuals depend on their accessibility in memory
De-emphasizes the importance of the decision
→ decision making may stop after finding a single discriminatory cue, but most ppl consider all evidence
Findings
Selecting the recognized object does not necessarily mean the recognition heuristic was used – it could have been chosen
for other reasons
People are much more likely to use the recognition heuristic when it is valid than when it is not
Simple heuristics can be moderately effective
outperform judgements based on much more complex calculations
Parallel constraint satisfaction theory: more info available, the faster the decision times
Recognition heuristic account: decision times slower when influenced by additional info
Recognition heuristic often not used when info was inconsistent (airport city experiment)
Take-the-best strategy used less often than predicted theoretically
Less likely when cost of info are low and cue validities unknown
more detailed processes then
More intelligent participants more likely to use the take-the-best strategy when it was the best one
Dual-process theory: Kahneman (2003)
Individuals sometimes use complex cognitive processes instead of rule of thumb
Probability judgements depend on processing within 2 systems:
System 1: fast, automatic, effortless, associative, implicit, implicit, often
emotionally charged, difficult to control or modify (most heuristics are produced by
this system)
System 2: analytical, controlled, rule-governed, slower, serial, effortful,
consciously-monitored, deliberately controlled, flexible
How are these systems related?
system 1 rapidly generates intuitive answers to judgement problems
those are then monitored & evaluated by System 2, which may correct them.
Thus, judgement involves serial processing: starting with system 1 & sometimes
followed by system 2
Modification: System 1 & System 2 processes can also operate in parallel
system 1 processes cause some info to become strongly activated
this info is then often overweighed & leads to biased judgements
errors of system 1 may be corrected by system 2
Findings
People who produced correct answers (and so presumably used system 2) took almost 40% longer than those apparently
using only System
consistent with the assumption that it takes longer to use System 2
Participants performed worse on problems when accompanied by secondary task (9.5% correct vs. 17%, respectively)
predicted given that System 2 involves use of cognitively demanding processes
Conflict btw base-rate info (suggesting Paul is a nurse) & personality description (suggesting he is a doctor)
use of System 1 processing might lead participants to focus on personality description using the representativeness
heuristic and decide Paul was probably a doctor
According to dual-process theory, cognitive load should reduce System 2 processing and use of base-rate information
In fact, cognitive load led to increased use of easily processed info regardless of whether it referred to base rate or
personality
Support:
Reasonable support for the existence of 2 different processing systems System 2 processing more effortful
People’s judgments are typically determined by System 1 rather than System 2
Limitations of model:
Alignment problem: assumed System 1 processes are unintentional, uncontrollable, unconscious & efficient (i.e., they
use minimal processing capacity) whereas System 2 processes are intentional, controllable, conscious & inefficient
these assumptions have rarely been tested.
evidence indicates that these attributes are much less highly correlated than assumed: hence, not possible to define
System 1 processes with precision
Oversimplified: rapid responses often reflect System 2 processing & slow responses often reflect System 1 thinking than
vice versa
Little support for original assumption that System 1 & System 2 processes occur serially
theory fails to provide an explicit account of the monitoring determining whether we decide to use System 2
processes as well as System 1 processes
Good/bad fallacy: assumptions that System 1 processing is often “bad” and error-prone whereas System 2 processing is
“good” and leads to rational judgements → oversimplification!
Processing on judgement tasks is much more flexible than implied
Different processes often operate in parallel rather than serially
Evaluation
Strengths:
Prospect theory represents a substantial advance over previous approaches (e.g., subjective expected utility theory)
Value function (notion that losses loom larger than gains) accounts for many phenomena (loss aversion; sunk-cost effect;
framing effect)
Wide applicability: professional golfers, experienced poker players & financiers all show loss aversion
Was crucial in development of behavioral economics
Limitations:
Lacks principle that might explain why such preferences [ex: loss aversion] exist
Lack of clarity about participants’ reference points makes it hard to test theoretical predictions
No explanation about cognitive processes underlying the various decision-making biases
Much research artificial: sometimes less support for prospect theory with more naturalistic conditions
Loss aversion occurs less often than predicted (ex: when little amount of money involved)
De-emphasizes individual differences in willingness to make risky decisions
Does not emphasize effects of social and emotional factors on decision-making
Emotional Factors
When participants lost, they experienced regret if they had made the decision, but disappointment if the computer had
Regret was followed by riskier choices than disappointment
Wins were experienced as rejoicing (personal choices) or elation (computer choices), with elation being followed by
riskier choices
According to Kahneman: “Humans described by prospect theory are guided by the immediate emotional impact of gains
and losses.”
1. Theory assumes there is diminishing sensitivity to changes in value as gains & losses increase
→ prediction: same for feelings associated with gains & losses
2. Theory assumes the subjective value of a given loss is greater than the impact of an equivalent gain and this
produces loss aversion
→ prediction: feelings would be influenced more by a given loss than an equivalent gain
Impact bias: ppl overestimate the intensity and duration of their negative/positive emotional reactions to loss/gain
Social Factors
Social functionalist approach (Tetlock)
Considers social context of decision making: we feel the need to justify out decisions to other ppl as well as to ourselves
tendency towards sunk-cost effect is strongest with high accountability & lowest with low-accountability
more evidence of status quo bias (maintaining present state but not accepting drug) when ppl felt accountable for
their decision
Politicians more prone to various decision-making biases (sunk-cost effect; status quo effect) than other ppl
explains some of the poor decisions made by politicians & suggest that accountability can distort the decision-
making process
Those living in individualistic cultures are more sensitive to losses and so exhibit more loss aversion than those in
collectivistic culture
cushion hypothesis: social support provided by others in collectivistic cultures provides a “cushion” for potential
financial losses
Advantages: emphasizes important social factors that are de-emphasized within prospect theory
Limitations:
Individual differences in extent to which ppl feel the need to justify themselves to other ppl are ignored
Most relevant research involves tab tasks that don’t make real demands on social responsibility
Complex decision-making
Decision-making in everyday life is much more complex than under lab conditions
(1) more serious consequences in real world (medical experts making life/death decisions)
(2) in real life we often make several decisions over time instead of a single decision as in lab
In an ideal world, our decision-making would involve strategies maximizing utility (= the subjective desirability of an
outcome)
Multi-attribute utility theory: approximation to an ideal strategy involving the following stages:
1) Identify attributes relevant to decision
2) Decide how to weight those attributes
3) List all options under consideration
4) Rate each option on each attribute
5) Obtain a total utility (i.e. subjective desirability for each option by summing its weighted attribute values)
6) Select option with highest weighted total
Ex: deciding to rent a flat – 1. pay attention to attributes like number of rooms, location, rent per week; 2. utility of
these attributes is calculated; 3. various flats are compared in terms of their total utility; 4. renter chooses apartment
with highest total utility
People rarely use this procedure in real life – 1) can be very complex; 2) set of relevant dimensions cannot always
be worked out; 3) dimensions may not be clearly separate (independent) from each other
We often engage in satisficing: decision-making that prioritizes some sources of information while ignoring others
not guaranteed to produce best decision but is useful when various options become available at different points in
time
satisficers vs. maximizers: satisficers are content with making reasonably good decisions while maximizers are
perfectionists; satisficers are happier, more satisfied, optimistic, & experience less regret & self-blame
Study 1b
Replicated Study 1a but with chocolate and a different sample of people
Results: same as 1a European Americans having a larger effect
Study 2
Primed independent or interdependent self-construals while trying to replicate the findings from study 1
Method: Participants randomly assigned to one priming condition: independent or interdependent
Participants in the control condition were not primed
The rest was the same as in Study 1
Results: Endowment effect was moderated by the priming condition
Significant in the control and independent self-construal condition
Not significant in the interdependent self-construal condition
Study 3
Method: Japanese and Canadian participants were primed to associate or not associate themselves with a coffee mug,
expecting cultural differences in the endowment effect to emerge more strongly in the former condition
Results
When the self-object association were made noticeable, European Canadians showed a significant endowment
effect
Whereas Japanese showed a nonsignificant but distinct tendency toward a reverse effect
In the no-object association condition the result was the opposite
General discussion
Cultural differences in the endowment effect
Interdependent self-construals are less associated with positive regard for the self than independent self-construals are
Mere ownership of an object may elicit enhancement of its perceived value in Western cultures more than in Eastern
cultures
Article: How Uber Uses Psychological Tricks to Push Its Drivers’ Buttons
(Scheiber)
Nudging
Combat shortages by advising drivers to move to areas where they exist or might arise
Encouragement toward concrete goals (money)
1) Income targeting – workers decide how long to with a goal in mind (highly inefficient as they end up working
long on slow days and short on long days)
To keep drivers on the road, the company has exploited some people’s tendency to set earnings goals — alerting them that
they are ever so close to hitting a precious target when they try to log off
this means sending drivers their next fare opportunity before their current ride is even over
Uber adopted a female persona for texting drivers, having found that the uptake was higher when they did
Experimented with simple encouragement: You’re almost halfway there, congratulations!
Loss aversion: holds that people “dislike losing more than they like gaining”
When drivers tried to log out, the app would frequently tell them they were only a certain amount away from making a
seemingly arbitrary sum for the day, or from matching their earnings from that point one week earlier
Ludic loop: a feeling of progress toward a goal that is always just beyond the subject’s grasp
Increase hours drivers schedule during busy periods by making use of loss aversion
1) Show how much drivers will lose when they keep driving during less busy periods rather than tell them how
much they earn when the drive during busy periods
Forward dispatch – dispatch new ride to driver before current one ends
1) Drivers stay on the road longer as it takes more effort to stop than it does to keep going
2) Don’t let drivers see where next ride is going, making it hard to judge how profitable it is
Gamification strategy
Article: Culture and Judgment and Decision Making: The Constructivist Turn
(Weber)
Research on JDM (judgment and decision making) has traditionally focused on the contextual factors that influence on-
line constructive processes
Individual differences and, by extension, cultural differences conceptualized as value- or trait-based differences in
judgment and choice have gotten short(er) shrift
The movement of reconceptualising cultural differences from differences in modal personalities to differences in
constructive processes, cued and maintained by differences in the structure of a culture’s social environment, should result
in a much closer alignment of the explanatory frameworks of JDM and culture research, with the hope for more fruitful
interactions
The field of judgment and decision making (JDM) encompasses the study of economic and policy choices that involve
assessing risks and benefits and of interpersonal and social choices that involve attributions and expectancies
Cultural differences in JDM have been found to vary with task conditions
Cultural styles of JDM reflect not fixed worldviews but evoked frames of mind situated meaning construction
processes reflecting internal cultural representations from memory as well as external structures in the cultural
environment constructivist view
Cultural representations guide judgments and decisions to the extent that they become activated in framing a problem so
as to constrain attention, evidential search, and inference Decisions depend on features of the decision and task context
Cultural tendencies in judgment can be primed in 2 distinct ways:
1) Direct semantic priming of individualism–collectivism, independence– interdependence, and individuation–
contextualization primes individuating and contextualizing processing
2) Indirect or associative priming: in every culture there are representative emblems and symbols that evoke or
make accessible other representations of the culture without positing fixed worldviews, it still may be the
case that these schemas shape frames of judgment much of the time
Examples of cultural differences and decision making
Conflict Decisions: Such decisions within social interactions involve conflict between collective interests and
self interest
in-group interactions, East Asians have a stronger tendency towards collective-interest strategies than do
Westerners
Confidence Judgments: Judging the accuracy of one's beliefs
Overconfidence is present in Western cultures, but it is much stronger in East Asian societies
differences in educational practices encouraging critical thinking
Risk Perception: not just objective reflections of information but judgements that differ across individuals and
cultures
Some cultural differences in risk perception for e.g. technological hazards have been found, but people
across countries or cultures seem to share the same factor structure
Risky Choice: risk in financial choices depends on the context of the social network
Economic support networks tend to be larger in collectivist settings than they are in individualist settings
like family ties in Eastern networks evoke larger risk taking
Cushion hypothesis – argues that large networks of these economic support ties insure individuals against
financial worst-case outcomes
Size of the network mediated cross-cultural differences in risk preferences
Differences in risk-taking come to some extent from norms encoded in traditional teachings
Conclusion:
2 distinguishing features of the constructivist view
1) Cultural representations are dynamic schemas rather than ever-present personality traits
2) External features of social environments play numerous roles in perpetuating cultural patterns of judgments and
decisions
Introduction
significant part of the population remains vaccine hesitant
Most efforts dedicated to increasing vaccine acceptance have aimed at vaccine-hesitant individuals, examining whether
provaccination messages attenuate their misgivings
information about vaccination also spreads through other means, with significant portions of the public relying, in part, on
informal sources such as friends, colleagues, and family
provaccination members of the public are only willing or able to offer relatively weak arguments to defend their opinions,
relying on personal anecdotes rather than proper evidence
also less likely to engage in online communication leading to an overrrepreseentation of antivaccination
comments online
improving the argumentative arsenal of provaccination individuals could indirectly help convince vaccine hesitant
individuals—and it might further assuage the remaining concerns of provaccine individuals
seemingly minor changes in the presentation of a piece of information can influence its likelihood of being accepted,
remembered, and further transmitted
Framing is the best studied of these superficial changes: logically equivalent descriptions can lead to very
different decisions when they are framed differently
One of the most robust framing effects is valence framing, where negatively framed information is judged as
truer is better memorized and is transmitted more often than positively framed information (a glass half empty is
a negative frame while a glass half full would be a positive frame)
However, there are relevant exceptions to this dominance of negative frame medical treatment etc.
attribute framing – considered “the most straightforward test of the influence of positive and negative framing”
people who want to be perceived as either pro- or antivaccine may show a preference for either one of the
frames, by being more eager to transmit messages that appear to reflect their position
Rhetorical orientation could even affect the perceived plausibility of the messages
goal of the study was to test whether framing influences the steps necessary for a statement to be used by a provaccine
individual in informal discussions: (a) evaluation of message plausibility (Experiments 2 and 5), (b) memorization of the
message (Experiment 3), (c) willingness to transmit the message further (Experiments 4 and 6), and finally (d) the
propensity to use the statements to convince someone who refuses to vaccinate (Experiment 7)
Experiment 1 aimed at establishing that our predictions about the direction of rhetorical orientation of the experimental
statements (in favor or against vaccination) were accurate
Experiments 5 and 6 were replications of Experiments 2 and 4 using a different sample
In each experiment, we compared statements that varied in valence (positively vs. negatively framed) and in rhetorical
orientation
added a third variant, that was negatively framed but whose rhetorical orientation was likely to be perceived as provaccine
because it began with the word only
Hypotheses
1) Positively framed statements with a rhetorical orientation in favor of vaccination will be more strongly associated with
provaccination individuals than statements with a negative valence and a rhetorical orientation against vaccination
2) Negatively framed statements with a rhetorical orientation in favor of vaccination (i.e., the statements with only) will be
more strongly associated with provaccination individuals than statements with a negative valence and a rhetorical
orientation against vaccination
3) Negatively framed statements will be judged truer than positively framed statements
4) Negatively framed statements will be better memorized than positively framed statements
5) Negatively framed statements will be more transmitted than positively framed statements
6) Positively framed statements will be judged truer than negatively framed statements
7) Exposition to positively framed statements will create more positive attitudes toward vaccination than exposition to
negatively framed statements
8) Statements with a rhetorical orientation in favor of vaccination will be judged truer than statements with a rhetorical
orientation against vaccination
9) Statements with a rhetorical orientation in favor of vaccination will be more shared than statements with a rhetorical
orientation against vaccination
Discussion
statements’ valence could be positive or negative, and the statements could be perceived as strongly provaccination or as
being ambiguous between being pro- and antivaccination
negatively framed statements, compared to positively framed statements, were not better memorized (Experiment 3), were
deemed less plausible (Experiments 2 and 5), and were less appealing to transmit (Experiments 4 and 6)
These effects in favor of positively framed statements ranged from small to large
The size of these effects and the conflicting direction of our results with the literature justified our decision to
replicate Experiments 2 and 4
effects of rhetorical orientation were broadly as expected
Rhetorical orientation had no effect on memory, but participants deemed more plausible (Experiment 2), and were
more willing to transmit (Experiment 4), statements whose rhetorical orientation better fitted their own views,
compared to statements that didn’t
While these effects ranged from small to medium for participants residing in the United States, there was no
significant effect of rhetorical orientation on plausibility or willingness of transmission with the sample from the
United Kingdom
unclear what drove this potential difference between the United States and United Kingdom
populations
Visual inspection of the results on plausibility and willingness to transmit in Figures 1 and 2 reveal the striking effects of
framing
Comparing the most favorable frame (positive with provaccination rhetorical orientation) to the most negative frame
(negative with ambiguous rhetorical orientation), we move from statements deemed very plausible to statements
deemed barely plausible, and from statements participants are keen to transmit to statements participants would
rather not transmit
strong framing effects have at least two significant practical consequences
1) positively valenced statements prompted participants to adopt a more positive attitude toward vaccination
2) in the case of statements about the scientific consensus, positively valenced statements were more likely to be
used by participants to argue against someone who opposes vaccination
3) Moreover, framing effects were also clearly perceptible in the way participants framed the arguments they chose
to use, with nearly all arguments being framed with a provaccination rhetorical orientation
results confirm that the choice of frame induces information leakage as frames informed readers about the attitudes of the
speakers toward vaccination
study reveals that messages aimed at reinforcing the argumentative tools of provaccination individuals must consider the
way the messages are framed
highlights the importance of conducting experiments on the specific messages we wish to provide to the population, rather
than extrapolating purely from past results, since the major framing effects we observed went in the opposite direction
from what was expected from some of the existing literature