Bounded rationality gets a bad rap in epistemology. It is argued that theories of bounded rationality are overly context‐sensitive; conventionalist; or dependent on ordinary language (Carr, 2022; Pasnau, 2013). In this paper, I have three aims. The first is to set out and motivate an approach to bounded rationality in epistemology inspired by traditional theories of bounded rationality in cognitive science. My second aim is to show how this approach can answer recent challenges raised for theories of bounded rationality. My (...) third aim is to clarify the role of rational ideals in bounded rationality. (shrink)

Are we being manipulated online? If so, is being manipulated by online technologies and algorithmic systems notably different from human forms of manipulation? And what is under threat exactly when people are manipulated online? This volume provides philosophical and conceptual depth to debates in digital ethics about online manipulation. The contributions explore the ramifications of our increasingly consequential interactions with online technologies such as online recommender systems, social media, user-friendly design, micro-targeting, default-settings, gamification, and real-time profiling. The authors in this (...) volume address four broad and interconnected themes: • What is the conceptual nature of online manipulation? And how, methodologically, should the concept be defined? • Does online manipulation threaten autonomy, freedom, and meaning in life, and if so, how? • What are the epistemic, affective, and political harms and risks associated with online manipulation? • What are legal and regulatory perspectives on online manipulation? The Philosophy of Online Manipulation brings these various considerations together to offer philosophically robust answers to critical questions concerning our online interactions with one another and with autonomous systems. It will be of interest to researchers and advanced students working in moral philosophy, digital ethics, philosophy of technology, and the ethics of manipulation. (shrink)

One important distinction in psychology is between inferences based on associative memory and inferences based on analysis and rules. Much previous empirical work conceive of associative and analytical processes as two exclusive ways of addressing a judgment task, where only one process is selected and engaged at a time, in an either-or fashion. However, related work indicate that the processes are better understood as being in interplay and simultaneously engaged. Based on computational modeling and brain imaging of spontaneously adopted judgment (...) strategies together with analyses of brain activity elicited in tasks where participants were explicitly instructed to perform similarity-based associative judgments or rule-based judgments (n = 74), we identified brain regions related to the two types of processes. We observed considerable overlap in activity patterns. The precuneus was activated for both types of judgments, and its activity predicted how well a similarity-based model fit the judgments. Activity in the superior frontal gyrus predicted the fit of a rule-based judgment model. The results suggest the precuneus as a key node for similarity-based judgments, engaged both when overt responses are guided by similarity-based and rule-based processes. These results are interpreted such that similarity-based processes are engaged in parallel to rule-based-processes, a finding with direct implications for cognitive theories of judgment. (shrink)

To function well in an unpredictable environment using unreliable components, a system must have a high degree of robustness. Robustness is fundamental to biological systems and is an objective in the design of engineered systems such as airplane engines and buildings. Cognitive systems, like biological and engineered systems, exist within variable environments. This raises the question, how do cognitive systems achieve similarly high degrees of robustness? The aim of this study was to identify a set of mechanisms that enhance robustness (...) in cognitive systems. We identify three mechanisms that enhance robustness in biological and engineered systems: system control, redundancy, and adaptability. After surveying the psychological literature for evidence of these mechanisms, we provide simulations illustrating how each contributes to robust cognition in a different psychological domain: psychomotor vigilance, semantic memory, and strategy selection. These simulations highlight features of a mathematical approach for quantifying robustness, and they provide concrete examples of mechanisms for robust cognition. (shrink)

Research from behavioural sciences shows that people reach decisions in a much less rational and well-considered way than was often assumed. The doctrine of informed consent, which is an important ethical principle and legal requirement in medical practice, is being challenged by these insights into decision-making and real-world choice behaviour. This article discusses the implications of recent insights of research on decision-making behaviour for the informed consent doctrine. It concludes that there is a significant tension between the often non-rational choice (...) behaviour and the traditional theory of informed consent. Responsible ways of dealing with or solving these problems are considered. To this end, patient decisions aids are discussed as suitable interventions to support autonomous decision-making. However, current PDAs demand certain improvements in order to protect and promote autonomous decision-making. Based on a conception of autonomy, we will argue which type of improvements are needed. (shrink)

Much research has been dedicated to map mental models of natural resources to aid effective management of the natural resource. The variety of approaches result in a variety of outputs, but most research in this domain reports mental models that have been aggregated across participants. This results in a misrepresentation of mental models as it overlooks valuable variance in understanding between individuals that could be key in effective decision-making. This paper illustrates such variance in mental models through a case study (...) that explored mental models of the Nile perch fisheries at Lake Victoria. This case study suggests that divergence in mental model present a barrier to effective management of the fisheries. Hence, this paper proposes avenues to further investigate and report the heterogeneity of mental models between and within individuals. Such research uncovers divergence in understanding, which can be addressed to aid decision-making in natural resource management. (shrink)

Recent work in judgment and decisionmaking has stressed that institutions, like individuals, often rely on decisionmaking heuristics. But most of the institutional decisionmaking heuristics studied to date are highly firm- and industry-specific. This contrasts to the individual case, in which many heuristics are general-purpose rules suitable for a wide range of decision problems. Are there also general-purpose heuristics for institutional decisionmaking? In this paper, I argue that a number of methods recently developed for decisionmaking under deep uncertainty have a good (...) claim to be understood as general-purpose decisionmaking heuristics suitable for a broad range of institutional decision problems. (shrink)

Time and technology permeate the fabric of teamwork across a variety of settings to affect outcomes which have a wide range of consequences. However, there is a limited understanding about the interplay between these factors for teams, especially as applied to artificial intelligence (AI) technology. With the increasing integration of AI into human teams, we need to understand how environmental factors such as time scarcity interact with AI technology to affect team behaviors. To address this gap in the literature, we (...) investigated the interaction between the availability of intelligent technology and time scarcity in teams. Drawing from the theoretical perspective of computers are social actors and extant research on the use of heuristics and human–AI interaction, this study uses behavioral data from 56 teams who participated in a between-subjects 2 (intelligent assistant available × control/no intelligent assistant) × 2 (time scarcity × control/no time scarcity) lab experiment. Results show that teams working under time scarcity used the intelligent assistant more often and underperformed on a creative task compared to teams without the temporal constraints. Further, teams who had an intelligent assistant available to them had fewer interactions between members compared to teams who did not have the technology. Implications for research and applications are discussed. (shrink)

The emergence of economic inequality has often been linked to individual differences in mental or physical capacities. By means of an agent-based simulation this paper shows that neither of these is a necessary condition. Rather, inequality can arise from iterated interactions of fully rational agents. This bears consequences for our understanding of both inequality and rationality. In a setting of iterated bargaining games, we claim that expected utility maximizing agents perform suboptimally in comparison with other strategies. The reason for this (...) lies in complex feedback effects between an agents’ action and the quality of beliefs used to calculate expected utility. Consequentially, we argue that the standard notion of rationality as maximizing expected utility is insufficient, even for certain standard cases of economic interaction. (shrink)

Cognitive Science, Volume 46, Issue 5, May 2022.

In this conceptual analysis contribution to the special issue on radical embodied cognition, we discuss how embodied cognition can exist with and without representations. We explore this concept through the lens of judgment and decision making in sports (JDMS). Embodied cognition has featured in many investigations of human behavior, but no single approach has emerged. Indeed, the very definitions of the concepts “embodiment” and “cognition” lack consensus, and consequently the degree of “radicalism” is not universally defined, either. In this paper (...) we address JDMS not from a rigid theoretical perspective, but from two embodied cognition approaches: one that assumes there is mediation between the athlete and the environment through mental representation, and another that assumes direct contact between the athlete and the environment and thus no need for mental representation. Importantly, our aim was not to arrive at a theoretical consensus or set up a competition between approaches, but rather to provide a legitimate scientific discussion about how to explain empirical results in JDMS from contrasting perspectives within embodied cognition. For this, we first outline the definitions and constructs of embodied cognition in JDMS. Second, we detail the theory underlying the mental representation and direct contact approaches. Third, we comment on two published research papers on JDMS, one selected by each of us: (1) Correia et al. (2012) and (2) Pizzera (2012). Fourth, following the interpretation of the empirical findings of these papers, we present a discussion on the commonalities and divergences of these two perspectives and the consequences of using one or the other approach in the study of JDMS. (shrink)

Adaptive rationality theorists question the manner in which psychologists have typically assessed rational behavior and cognition. According to them, human rationality is adaptive, and the biases reported in the psychological literature are best seen as the result of using normative standards that are too narrow. As it turns out, their challenge is also quite controversial, and several aspects of it have been called into question. Yet, whilst it is often suggested that the lack of cogency comes about due to the (...) implausibility of the alternative normative framework, in this paper I articulate a different strategy to resist the revolutionary rhetoric of AR. As I argue here, even if we accept the normative framework of AR, the challenge from AR is less damaging than usually accepted. In particular, I challenge the claim that biases reported in the literature should be conceived of as violations of axiomatic rationality. I argue that the category of bias refers instead to a range of heterogeneous phenomena and that, since several important families of biases are not just violations of axiomatic rationality, these are not vulnerable to the AR challenge. In fact, I also show that the families I consider here look like plausible cases of irrational behavior from the perspective of AR, and that the outcome of my analysis does not sit well with AR theorists’ claim that people are generally successful at achieving prudential and epistemic goals. (shrink)

Nudging works through dispositions to decide with specific heuristics, and has three component parts. A nudge is a feature of an environment that enables such a disposition; a person is nudged when such a disposition is triggered; and a person performs a nudged action when such a disposition manifests in action. This analysis clarifies an autonomy-based worry about nudging as used in public policy or for private profit: that a person’s ability to reason well is undermined when she is nudged. (...) Reasoning well is a component of self-guidance, which is an aspect of autonomy and so something there is reason to promote, preserve, or respect. However, a person can reason well when she is nudged: Many of these heuristics are good rules to reason with, and she can be flexible with respect to them when she takes there to be a better way to reason. Along the way, this paper uncovers several design specifications for responsible nudging, and discusses open empirical questions. However, nudging’s being compatible with reasoning well crystallizes a distinct worry about manipulation: that nudge designers can rely on nudged people guiding themselves toward the designers’ own ends. Manipulation of this sort exploits one aspect of autonomy (namely, self-guidance) to undermine autonomy in other respects. (shrink)

Researchers have suggested that ethical judgments about “right” and “wrong” are the result of deep and thoughtful principles and should therefore be consistent and not influenced by factors, such as language :e94842, 2014b, p. 1). As long as an ethical scenario is understood, individuals’ resolution should not depend on whether the ethical scenario is presented in their native language or in a foreign language. Given the forces of globalization and international convergence, an increasing number of accountants and accounting students are (...) becoming proficient in more than one language, and they are required to interpret and apply complex ethical pronouncements issued by various global standard setters both in their native language and in English. There have been calls in the literature to examine whether subjects make systematically different ethical judgments in a foreign language than in their native language. We contribute to the literature by drawing on culture, linguistics, and psychology research to provide empirical evidence that Chinese subjects are more aggressive in interpreting the concept of control when providing their consolidation reporting recommendations in English than in Simplified Chinese. We applied a 2 × 2 within-subject and between-subject randomized experimental design using a sample of Chinese final year undergraduate accounting students at a leading Chinese university, where accounting courses are taught in both Simplified Chinese and English. Students in our study are proxy for entry-level accounting practitioners. Our findings have implications for the globalized business world and cross-cultural research by challenging the commonly held assumption that an individual’s ethical judgment is consistent in different languages. We suggest that systematically different ethical judgments in native and foreign languages needs to be recognized. (shrink)

Over the past decades psychological theories have made significant headway into economics, culminating in the 2002 (partially) and 2017 Nobel prizes awarded for work in the field of Behavioral Economics. Many of the insights imported from psychology into economics share a common trait: the presumption that decision makers use shortcuts that lead to deviations from rational behaviour (the Heuristics-and-Biases program). Many economists seem unaware that this viewpoint has long been contested in cognitive psychology. Proponents of an alternative program (the Ecological-Rationality (...) program) argue that heuristics need not be irrational, particularly when judged relative to characteristics of the environment. We sketch out the historical context of the antagonism between these two research programs and then review more recent work in the Ecological-Rationality tradition. While the heuristics-and-biases program is now well-established in (mainstream neo-classical) economics via Behavioral Economics, we show there is considerable scope for the Ecological-Rationality program to interact with economics. In fact, we argue that there are many existing, yet overlooked, bridges between the two, based on independently derived research in economics that can be construed as being aligned with the tradition of the Ecological-Rationality program. We close the paper with a discussion of the open challenges and difficulties of integrating the Ecological Rationality program with economics. (shrink)

While environmental claims are increasingly used by companies to appeal consumers, they also attract greater scrutiny from independent parties interested in consumer protection. Consumers are now able to compare corporate environmental claims against external, often disconfirming, information to form their brand attitudes and purchase intentions. What remains unclear is how the level of information specificity of both the environmental claims and external disconfirming information interact to influence consumer reactions. Two experiments address this gap in the CSR communication literature. When specific (...) claims are countered by specific external information, consumers report more negative brand attitudes and lower purchase intentions. The effect is serially mediated by skepticism toward the claims and lack of corporate credibility. We conclude by discussing strategies that firms can utilize to avoid information dilution and ensure that external disconfirming information percolates to consumers as specific. (shrink)

Biologists and philosophers of biology have argued that learning rules that do not lead organisms to play evolutionarily stable strategies (ESSes) in games will not be stable and thus not evolutionarily successful. This claim, however, stands at odds with the fact that learning generalization---a behavior that cannot lead to ESSes when modeled in games---is observed throughout the animal kingdom. In this paper, I use learning generalization to illustrate how previous analyses of the evolution of learning have gone wrong. It has (...) been widely argued that the function of learning generalization is to allow for swift learning about novel stimuli. I show that in evolutionary game theoretic models learning generalization, despite leading to suboptimal behavior, can indeed speed learning. I further observe that previous analyses of the evolution of learning ignored the short term success of learning rules. If one drops this assumption, I argue, it can be shown that learning generalization will be expected to evolve in these models. I also use this analysis to show how ESS methodology can be misleading, and to reject previous justifications about ESS play derived from analyses of learning. (shrink)

Given the ubiquity and centrality of social and relational influences to the human experience, our conception of self-governance must adequately account for these external influences. The inclusion of socio-historical, externalist considerations into more traditional internalist accounts of autonomy has been an important feature of the debate over personal autonomy in recent years. But the relevant socio-temporal dynamics of autonomy are not only historical in nature. There are also important, and under-examined, future-oriented questions about how we retain autonomy while incorporating new (...) values into the existing set that guides our interaction with the world. In this paper, we examine these questions from two complementary perspectives: philosophy and neuroscience. After contextualizing the philosophical debate, we show the importance to theories of autonomous agency of the capacity to appropriately adapt our values and beliefs, in light of relevant experiences and evidence, to changing circumstances. We present a plausible philosophical account of this process, which we claim is generally applicable to theories about the nature of autonomy, both internalist and externalist alike. We then evaluate this account by providing a model for how the incorporation of values might occur in the brain; one that is inspired by recent theoretical and empirical advances in our understanding of the neural processes by which our beliefs are updated by new information. Finally, we synthesize these two perspectives and discuss how the neurobiology might inform the philosophical discussion. (shrink)

Climate change has historically been an evolutionary determinant for our species, affecting both hominin evolutionary innovations and extinction rates, and the early waves of migration and expansion outside Africa. Today Homo sapiens has turned itself into a major geological force, able to cause a biodiversity crisis comparable to previous mass extinction events, shaping the Earth surface and impacting biogeochemical cycles and the climate at a global level. We argue that anthropogenically-driven climate change must be understood in terms of a monumental (...) niche construction process, generating long-term ecological inheritance and eco-evolutionary feedbacks that are putting our health and well-being and those of future generations at risk. We then list five major sources of climate change counter-intuitiveness, highlighting how evolved cognitive biases and heuristics may stand in the way of providing effective responses within tight deadlines. Drawing on our framing of the climate breakdown, we finally call for an evolutionary perspective in approaching the adaptive challenge posed by climate change: we argue that putting the brakes on a genuine self-endangering evolutionary trap ultimately depends on our counteractive niche constructing abilities, played at the level of our institutional and innovation capacity. (shrink)

Competitive athletes act within cultures of risk in sports and often decide to return to sport despite having acute health problems. The outcomes of such risky return-to-play decisions can not only negatively affect their future health, but also limit their sports performance or even upset their career paths. Following risk-management-decision theory with its focus on active risk defusing, we developed a model for understanding the process of return-to-play decision making from an athlete’s perspective. Based on the method of active information (...) search, a quasi-naturalistic return-to-play decision scenario was created in order to assess amateur team sport athletes’ decision making strategies. The main goals were to identify different information acquisition patterns and to analyze the influence of social pressure to play hurt on decision making. A total of 72 competitive team sport athletes (36 females, 36 males, m= 25.7 years of age, 3rd to 6th league level) out of three disciplines (volleyball, basketball, and handball) participated in the experimental study. Facing the same medical scenario (a partial tear of the supraspinatus tendon), athletes show different approaches to return-to-play decision making. The main focus is on potential sporting consequences of withdrawal from competition due to injury, while only few players favoring well-informed decisions based on thorough risk analysis. The athletes who chose the medically risky alternative to play hurt mostly employed strategies of active risk defusing, which got activated when severe sporting consequences were perceived. Those who chose to withdraw from competition primarily referred to maximin heuristic, particularly when social pressure to play was reduced. The findings can be used to improve rehabilitation. (shrink)

The literatures on bounded and ecological rationality are built on adaptationism—and its associated modular, cognitivist and computational paradigm—that does not address or explain the evolutionary origins of rationality. We argue that the adaptive mechanisms of evolution are not sufficient for explaining human rationality, and we posit that human rationality presents exaptive origins, where exaptations are traits evolved for other functions or no function at all, and later co-opted for new uses. We propose an embodied reconceptualization of rationality—embodied rationality—based on the (...) reuse of the perception-action system, where many neural processes involved in the control of the sensory-motor system, salient in ancestral environments have been later co-opted to create—by tinkering—high-level reasoning processes, employed in civilized niches. (shrink)

The ‘bat and ball’ is one of the problems most frequently employed as a testbed for research on the dual-system hypothesis of reasoning. Frederick (J Econ Perspect 19:25–42, 2005) is the first to envisage the possibility that different numerical arrangements of the ‘bat and ball’ problem could lead to different dynamics of activation of the dual-system, and so to different performances of subjects in task accomplishment. This possibility has triggered a strand of research oriented to accomplish ‘sensitivity analyses’ of the (...) ‘bat and ball’ problem. The scope of this paper is to test experimentally the specific hypothesis that numerals are responsible for the selective activation of the two systems of reasoning in this task. In particular, we argue that their role goes beyond and cannot be reduced to that of numbers conceived as magnitudes. To test our hypothesis, we devise an experimental setting in which the role of numbers (as magnitudes) is rendered irrelevant. We find experimental results consistent with our hypothesis. We further provide a link between the literature on mathematical problem-solving and that on mathematical cognition research, in particular that branch labeled embodied mathematical cognition. (shrink)

This paper discusses contemporary advancements in the affective sciences that can inform the music-emotion literature. Key concepts in these theories are outlined, highlighting their points of agreement and disagreement. This summary shows the importance of appraisal within the emotion process, provides a greater emphasis upon goal-directed accounts of behavior, and a need to move away from discrete emotion “folk” concepts and toward the study of an emotional episode and its components. Consequently, three contemporary music emotion theories are examined through a (...) skeptical lens. This critique highlights the over-reliance upon categorization and a lack of acknowledgment of appraisal processes, specifically goal-directed appraisal, in examining how individual experiences of music emerge in different contexts. Based on this critique of current music-emotion models, we present our skeptically informed CODA model - Constructivistly-Organised Dimensional-Appraisal model. This model addresses skeptical limitations of existing theories, reinstates the role of goal-directed appraisal as central to what makes music relevant and meaningful to an individual in different contexts and brings together different theoretical frameworks into a single model. From the development of the CODA model, several hypotheses are proposed and applied to musical contexts. These hypotheses address theoretical issues such as acknowledging individual and contextual differences in emotional intensity and valence, as well as differentiating between induced and perceived emotions, and utilitarian and aesthetic emotions. We conclude with a sections of recommendations for future research. Altogether, this theoretical critique and proposed model points toward a positive future direction for music-emotion science. One where researchers can take forward testable predictions about what makes music relevant and meaningful to an individual. (shrink)

The ability to generate options for action is crucial for everyday life decision‐making. In this article, we propose and test a model of the cognitive underpinnings of option generation in everyday life situations. We carried out a laboratory study using measures of a wide range of cognitive functions and asked participants (N = 157) to generate options for actions for different everyday life decision‐making scenarios. The results of a latent variable analysis show that the cognitive underpinnings of option generation are (...) consistent across different everyday life situations and, hence, option generation can be conceptualized as a general construct. Moreover, the results of a confirmatory factor analysis reveal that, when controlling for the shared variance among the cognitive processes assessed, verbal fluency, working memory capacity, ideation fluency, and processing speed predicted option generation. These findings suggest that option generation in everyday life situations can be distinguished from other cognitive constructs, such as divergent thinking (in terms of ideas’ originality) and long‐term memory. (shrink)

By synthesizing the argumentation theory of new rhetoric with research on heuristics and motivated reasoning, we develop a conceptual view of argumentation based on reasoning motivations that sheds new light on the morality of decision-making. Accordingly, we propose that reasoning in eristic argumentation is motivated by psychological (e.g., anxiety reduction) or material (e.g., vested interests) gains that do not depend on resolving the problem in question truthfully. Contrary to heuristic argumentation, in which disputants genuinely argue to reach a practically rational (...) solution, eristic argumentation aims to defeat the counterparty rather than seeking a reasonable solution. Eristic argumentation is susceptible to arbitrariness and power abuses; therefore, it is inappropriate for making moral judgments with the exception of judgments concerning moral taboos, which are closed to argumentation by their nature. Eristic argumentation is also problematic for strategic and entrepreneurial decision-making because it impedes the search for the right heuristic under uncertainty as an ecologically rational choice. However, our theoretical view emphasizes that under extreme uncertainty, where heuristic solutions are as fallible as any guesses, pretense reasoning by eristic argumentation may be instrumental for its adaptive benefits. Expanding the concept of eristic argumentation based on reasoning motivations opens a new path for studying the psychology of reasoning in connection to morality and decision-making under uncertainty. We discuss the implications of our theoretical view to relevant research streams, including ethical, strategic and entrepreneurial decision-making. (shrink)

With the ever expanding array of professional journals, pressures on the peer review process have increased considerably. Unless editors and publishers recognize the need for improving the efficiency of the process, the future of traditional peer review may be at risk. This is a review of the studies that have followed up the suggestions made by Ingelfinger in 1974 for improvement of manuscript peer review. Implementation of changes has been slow, despite the abundance of literature that suggests the necessary improvements. (...) Conscientious self-regulation is expected of editors who, in the current publication scenario, possess enormous power without liability. Suitability of peer review to outsourcing should be assessed and if it is absolutely essential to outsource peer review, care should be taken to ensure that it is implemented systematically and monitored regularly for quality. Finally, it is time for high earning publishers to consider compensation for the efforts of the reviewers. (shrink)

What is personhood? What do we want it to be? Blumenthal-Barby (2024) offers an answer to the first question: personhood is an unhelpful, harmful, and pernicious concept in the bioethical setting....

Despite the ubiquity of uncertainty, scientific attention has focused primarily on probabilistic approaches, which predominantly rely on the assumption that uncertainty can be measured and expressed numerically. At the same time, the increasing amount of research from a range of areas including psychology, economics, and sociology testify that in the real world, people’s understanding of risky and uncertain situations cannot be satisfactorily explained in probabilistic and decision-theoretical terms. In this article, we offer a theoretical overview of an alternative approach to (...) uncertainty developed in the framework of the ecological rationality research program. We first trace the origins of the ecological approach to uncertainty in Simon’s bounded rationality and Brunswik’s lens model framework and then proceed by outlining a theoretical view of uncertainty that ensues from the ecological rationality approach. We argue that the ecological concept of uncertainty relies on a systemic view of uncertainty that features it as a property of the organism–environment system. We also show how simple heuristics can deal with unmeasurable uncertainty and in what cases ignoring probabilities emerges as a proper response to uncertainty. (shrink)

Human decision making shows systematic simplifications and deviations from the tenets of rationality (‘heuristics’) that may lead to suboptimal decisional outcomes (‘cognitive biases’). There are currently three prevailing theoretical perspectives on the origin of heuristics and cognitive biases: a cognitive-psychological, an ecological and an evolutionary perspective. However, these perspectives are mainly descriptive and none of them provides an overall explanatory framework for the underlying mechanisms of cognitive biases. To enhance our understanding of cognitive heuristics and biases we propose a neural (...) network framework for cognitive biases, which explains why our brain systematically tends to default to heuristic (‘Type 1’) decision making. We argue that many cognitive biases arise from intrinsic brain mechanisms that are fundamental for the working of biological neural networks. In order to substantiate our viewpoint, we discern and explain four basic neural network principles: (1) Association, (2) Compatibility (3) Retainment, and (4) Focus. These principles are inherent to (all) neural networks which were originally optimized to perform concrete biological, perceptual, and motor functions. They form the basis for our inclinations to associate and combine (unrelated) information, to prioritize information that is compatible with our present state (such as knowledge, opinions and expectations), to retain given information that sometimes could better be ignored, and to focus on dominant information while ignoring relevant information that is not directly activated. The supposed mechanisms are complementary and not mutually exclusive. For different cognitive biases they may all contribute in varying degrees to distortion of information. The present viewpoint not only complements the earlier three viewpoints, but also provides a unifying and binding framework for many cognitive bias phenomena. (shrink)

Applying the framework of ecological rationality, the authors studied the adaptivity of group decision making. In detail, they investigated whether groups apply decision strategies conditional on their composition in terms of task‐relevant features. The authors focused on the recognition heuristic, so the task‐relevant features were the validity of the group members' recognition and knowledge, which influenced the potential performance of group strategies. Forty‐three three‐member groups performed an inference task in which they had to infer which of two German companies had (...) the higher market capitalization. Results based on the choice data support the hypothesis that groups adaptively apply the strategy that leads to the highest theoretically achievable performance. Time constraints had no effect on strategy use but did have an effect on the proportions of different types of arguments. Possible mechanisms underlying the adaptive use of recognition in group decision making are discussed. (shrink)

Herbert Simon viewed innovation as a particular type of problem-solving behavior that entails refocus of attention and search for alternatives outside the existing domain of standard operations. This exploration outside of standard routines involves heuristic-based discovery and action, such as satisficing search for information and options. In our observations on the innovation process, we focus on knowledge generation. We propose viewing the process of generating knowledge—when knowledge is sufficient to instigate action, but not necessarily enough to eliminate the uncertainty of (...) the situation—as a heuristic process. Because many personal and organizational decisions are acted upon in the presence of some degree of uncertainty, we argue that heuristics structure the way in which information is processed innovatively. We provide a catalogue of instances in business decision making. (shrink)