In the international bestseller, Thinking, Fast and Slow, Daniel Kahneman, the renowned psychologist and winner of the Nobel Prize in Economics, takes us on a groundbreaking tour of the mind and explains the two systems that drive the way we think. System 1 is fast, intuitive, and emotional; System 2 is slower, more deliberative, and more logical. The impact of overconfidence on corporate strategies, the difficulties of predicting what will make us happy in the future, the profound effect of cognitive (...) biases on everything from playing the stock market to planning our next vacation—each of these can be understood only by knowing how the two systems shape our judgments and decisions. -/- Engaging the reader in a lively conversation about how we think, Kahneman reveals where we can and cannot trust our intuitions and how we can tap into the benefits of slow thinking. He offers practical and enlightening insights into how choices are made in both our business and our personal lives—and how we can use different techniques to guard against the mental glitches that often get us into trouble. Winner of the National Academy of Sciences Best Book Award and the Los Angeles Times Book Prize and selected by The New York Times Book Review as one of the ten best books of 2011, Thinking, Fast and Slow is destined to be a classic. (shrink)

Decision making theory in general, and mental models in particular, associate judgment and choice. Decision choice follows probability estimates and errors in choice derive mainly from errors in judgment. In the studies reported here we use the Monty Hall dilemma to illustrate that judgment and choice do not always go together, and that such a dissociation can lead to better decision-making. Specifically, we demonstrate that in certain decision problems, exceeding working memory limitations can actually improve decision choice. We show across (...) four experiments that increasing the number of choice alternatives forces people to collapse choices together, resulting in better decision-making. While choice performance improves, probability judgments do not change, thus demonstrating an important dissociation between choice and probability judgments. We propose the Collapsing Choice Theory (CCT) which explains how working memory capacity, probability estimation, choice alternatives, judgment, and regret all interact and effect decision quality. (shrink)

Decision making theory in general, and mental models in particular, associate judgment and choice. Decision choice follows probability estimates and errors in choice derive mainly from errors in judgment. In the studies reported here we use the Monty Hall dilemma to illustrate that judgment and choice do not always go together, and that such a dissociation can lead to better decision-making. Specifically, we demonstrate that in certain decision problems, exceeding working memory limitations can actually improve decision choice. We show across (...) four experiments that increasing the number of choice alternatives forces people to collapse choices together, resulting in better decision-making. While choice performance improves, probability judgments do not change, thus demonstrating an important dissociation between choice and probability judgments. We propose the Collapsing Choice Theory (CCT) which explains how working memory capacity, probability estimation, choice alternatives, judgment, and regret all interact and effect decision quality. (shrink)

Distinctions have been proposed between systems of reasoning for centuries. This article distills properties shared by many of these distinctions and characterizes the resulting systems in light of recent findings and theoretical developments. One system is associative because its computations reflect similarity structure and relations of temporal contiguity. The other is "rule based" because it operates on symbolic structures that have logical content and variables and because its computations have the properties that are normally assigned to rules. The systems serve (...) complementary functions and can simultaneously generate different solutions to a reasoning problem. The rule-based system can suppress the associative system but not completely inhibit it. The article reviews evidence in favor of the distinction and its characterization. (shrink)

The Monty Hall dilemma is a notorious probability problem with a counterintuitive solution. There is a strong tendency to stay with the initial choice, despite the fact that switching doubles the probability of winning. The current randomised experiment investigates whether feedback in a series of trials improves behavioural performance on the MHD and increases the level of understanding of the problem. Feedback was either conditional or non-conditional, and was given either in frequency format or in percentage format. Results show that (...) people learn to switch most when receiving conditional feedback in frequency format. However, problem understanding does not improve as a consequence of receiving feedback. Our study confirms the dissociation between behavioural performance on the MHD, on one hand, and actual understanding of the MHD, on the other. We discuss how this dissociation can be understood. (shrink)

This article outlines a theory of naive probability. According to the theory, individuals who are unfamiliar with the probability calculus can infer the probabilities of events in an extensional way: They construct mental models of what is true in the various possibilities. Each model represents an equiprobable alternative unless individuals have beliefs to the contrary, in which case some models will have higher probabilities than others. The probability of an event depends on the proportion of models in which it occurs. (...) The theory predicts several phenomena of reasoning about absolute probabilities, including typical biases. It correctly predicts certain cognitive illusions in inferences about relative probabilities. It accommodates reasoning based on numerical premises, and it explains how naive reasoners can infer posterior probabilities without relying on Bayes's theorem. Finally, it dispels some common misconceptions of probabilistic reasoning. (shrink)

The Monty Hall Problem (MHP), a process of two-stage decision making, was presented in atypical form via a custom software game. Differing from the normal three-box MHP, the game added one additional box on-screen for each game—culminating on game 23 with 25 on-screen boxes to initially choose from. A total of 108 participants played 23 games (trials) in one of four conditions; (1) “Vanish” condition—all non-winning boxes totally removed from the screen; (2) “Empty” condition—all non-winning boxes remain on-screen, but with (...) an “empty” label on them; (3) “Steroids” condition—all non-winning boxes removed from the screen, with initially chosen box becoming 25% larger; (4) “Steroids2” condition—all non-winning boxes removed from the screen, box not currently chosen becomes 25% larger. Results indicate second-stage on-screen presence of boxes influences switching; with their absence having the opposite effect. Size manipulation appears to elicit demand characteristics resulting in indeterminate influence. (shrink)

This research examined choice behaviour and probability judgement in a counterintuitive reasoning problem called the Monty Hall problem (MHP). In Experiments 1 and 2 we examined whether learning from a simulated card game similar to the MHP affected how people solved the MHP. Results indicated that the experience with the card game affected participants' choice behaviour, in that participants selected to switch in the MHP. However, it did not affect their understanding of the objective probabilities. This suggests that there is (...) dissociation between implicit knowledge gained from the task and the explicit understanding as to why switching was the best strategy. In Experiment 3, the number of prizes and doors were manipulated to examine how participants construed the problem space of the MHP. Results revealed that participants partition the probability judgement to reflect the number of prizes over the number of unopened doors. (shrink)

Dual-process and dual-system theories in both cognitive and social psychology have been subjected to a number of recently published criticisms. However, they have been attacked as a category, incorrectly assuming there is a generic version that applies to all. We identify and respond to 5 main lines of argument made by such critics. We agree that some of these arguments have force against some of the theories in the literature but believe them to be overstated. We argue that the dual-processing (...) distinction is supported by much recent evidence in cognitive science. Our preferred theoretical approach is one in which rapid autonomous processes are assumed to yield default responses unless intervened on by distinctive higher order reasoning processes. What defines the difference is that Type 2 processing supports hypothetical thinking and load heavily on working memory. (shrink)

The Bayesian model has been used in psychology as the standard reference for the study of probability revision. In the first part of this paper we show that this traditional choice restricts the scope of the experimental investigation of revision to a stable universe. This is the case of a situation that, technically, is known as focusing. We argue that it is essential for a better understanding of human probability revision to consider another situation called updating (Katsuno & Mendelzon, 1992), (...) in which the universe is evolving. In that case the structure of the universe has definitely been transformed and the revision message conveys information on the resulting universe. The second part of the paper presents four experiments based on the Monty Hall puzzle that aim to show that updating is a natural frame for individuals to revise their beliefs. (shrink)

The phenomenon of base-rate neglect has elicited much debate. One arena of debate concerns how people make judgments under conditions of uncertainty. Another more controversial arena concerns human rationality. In this target article, we attempt to unpack the perspectives in the literature on both kinds of issues and evaluate their ability to explain existing data and their conceptual coherence. From this evaluation we conclude that the best account of the data should be framed in terms of a dual-process model of (...) judgment, which attributes base-rate neglect to associative judgment strategies that fail to adequately represent the set structure of the problem. Base-rate neglect is reduced when problems are presented in a format that affords accurate representation in terms of nested sets of individuals. (shrink)

This book explores the idea that much of our behaviour is controlled by automatic and intuitive mental processes, which shape and compete with our conscious thinking and decision making. Accessibly written, and assuming no prior knowledge of the field, the book will be fascinating reading for all those interested in human behaviour.

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