The purpose of this paper is to examine the normative interpretation of the fast-and-frugal research program and in particular to contrast it with the normative reading of rational choice theory and behavioral economics. The ecological rationality of fast-and-frugal heuristics is admittedly a form of normative naturalism – it derives what agents “ought” to do from that which “is” ecologically rational – and the paper will examine how this differs from the normative rationality associated with rational choice theory. (...) I will also attempt to assess the relative adequacy of normative ecological rationality. (shrink)

(2000). Ecological rationality and its contents. Thinking & Reasoning: Vol. 6, No. 4, pp. 375-384.

[Correction Notice: An erratum for this article was reported in Vol 109 of Psychological Review. Due to circumstances that were beyond the control of the authors, the studies reported in "Models of Ecological Rationality: The Recognition Heuristic," by Daniel G. Goldstein and Gerd Gigerenzer overlap with studies reported in "The Recognition Heuristic: How Ignorance Makes Us Smart," by the same authors and with studies reported in "Inference From Ignorance: The Recognition Heuristic". In addition, Figure 3 in the Psychological (...) Review article was originally published in the book chapter and should have carried a note saying that it was used by permission of Oxford University Press.] One view of heuristics is that they are imperfect versions of optimal statistical procedures considered too complicated for ordinary minds to carry out. In contrast, the authors consider heuristics to be adaptive strategies that evolved in tandem with fundamental psychological mechanisms. The recognition heuristic, arguably the most frugal of all heuristics, makes inferences from patterns of missing knowledge. This heuristic exploits a fundamental adaptation of many organisms: the vast, sensitive, and reliable capacity for recognition. The authors specify the conditions under which the recognition heuristic is successful and when it leads to the counter-intuitive less-is-more effect in which less knowledge is better than more for making accurate inferences. (shrink)

Ecological rationality is a concept important to most environmental and natural resources policy and to much policy-relevant literature and research. Yet ecological rationality as a distinctive form of reason can only be understood and appreciated in the context of a larger body of work on the general concept of rationality. In particular, Herbert Simon’s differentiation between substantive and proceduralrationality and Paul Diesing’s specification of forms of practical reason are useful tools in mapping and defining (...) class='Hi'>ecological rationality. The significance and characteristics of ecological rationality suggest that it is a fundamental kind of reason, having precedence over others. (shrink)

The notion of ecological rationality implies that the accuracy of a decision strategy depends on features of the information environment in which it is tested. We demonstrate that the performance of a group may be strongly affected by the decision strategies used by its individual members and specify how this effect is moderated by environmental features. Specifically, in a set of simulation studies, we systematically compared four decision strategies used by the individual group members: two linear, compensatory decision (...) strategies and two simple, noncompensatory heuristics. Individual decisions were aggregated by using a majority rule. To assess the ecological rationality of the strategies, we varied (a) the distribution of cue validities, (b) the quantity, and (c) the quality of shared information. Group performance strongly depended on the distribution of cue validities. When validities were linearly distributed, groups using a compensatory strategy achieved the highest accuracy. Conversely, when cue validities followed a J-shaped distribution, groups using a simple lexicographic heuristic performed best. While these effects were robust across different quantities of shared information, the quality of shared information exerted stronger effects on group performance. Consequences for prescriptive theories on group decision making are discussed. (shrink)

While theories of rationality and decision making typically adopt either a single-powertool perspective or a bag-of-tricks mentality, the research program of ecological rationality bridges these with a theoretically-driven account of when different heuristic decision mechanisms will work well. Here we described two ways to study how heuristics match their ecological setting: The bottom-up approach starts with psychologically plausible building blocks that are combined to create simple heuristics that fit specific environments. The top-down approach starts from the (...) statistical problem facing the organism and a set of principles, such as the bias– variance tradeoff, that can explain when and why heuristics work in uncertain environments, and then shows how effective heuristics can be built by biasing and simplifying more complex models. We conclude with challenges these approaches face in developing a psychologically realistic perspective on human rationality. (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 (...) class='Hi'>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)

I argue that altruistic behavior and its variation across cultures may be caused by mental cognitive mechanisms that induce cooperative behavior in contract-like situations and adapt that behavior to the kinds of contracts that exist in one's socio-cultural environment. I thus present a cognitive alternative to Henrich et al.'s motivation-based account. Rather than behaving in ways that reveal preferences, subjects interpret the experiment in ways that cue their social heuristics. In order to distinguish the respective roles of preferences and cognitive (...) processes that determine economic behavior, we need more ethnography of strategies “in the wild.”. (shrink)

Axiomatic rationality is defined in terms of conformity to abstract axioms. Savage limited axiomatic rationality to small worlds, that is, situations in which the exhaustive and mutually exclusive set of future states S and their consequences C are known. Others have interpreted axiomatic rationality as a categorical norm for how human beings should reason, arguing in addition that violations would lead to real costs such as money pumps. Yet a review of the literature shows little evidence that (...) violations are actually associated with any measurable costs. Limiting axiomatic rationality to small worlds, I propose a naturalized version of rationality for situations of intractability and uncertainty, all of which are not in. In these situations, humans can achieve their goals by relying on heuristics that may violate axiomatic rationality. The study of ecological rationality requires formal models of heuristics and an analysis of the structures of environments these can exploit. It lays the foundation of a moderate naturalism in epistemology, providing statements about heuristics we should use in a given situation. Unlike axiomatic rationality, ecological rationality can explain less-is-more effects, formalize when one should move from ‘is’ to ‘ought,’ and be evaluated by goals beyond coherence, such as predictive accuracy, frugality, and efficiency. Ecological rationality can be seen as a formalization of means–end instrumentalist rationality, based on Herbert Simon’s insight that rational behavior is a function of the mind and its environment. (shrink)

According to the paradigm of adaptive rationality, successful inference and prediction methods tend to be local and frugal. As a complement to work within this paradigm, we investigate the problem of selecting an optimal combination of prediction methods from a given toolbox of such local methods, in the context of changing environments. These selection methods are called meta-inductive strategies, if they are based on the success-records of the toolbox-methods. No absolutely optimal MI strategy exists—a fact that we call the (...) “revenge of ecological rationality”. Nevertheless one can show that a certain MI strategy exists, called “AW”, which is universally long-run optimal, with provably small short-run losses, in comparison to any set of prediction methods that it can use as input. We call this property universal access-optimality. Local and short-run improvements over AW are possible, but only at the cost of forfeiting universal access-optimality. The last part of the paper includes an empirical study of MI strategies in application to an 8-year-long data set from the Monash University Footy Tipping Competition. (shrink)

Topics in Cognitive Science, Volume 14, Issue 3, Page 467-491, July 2022.

Standard evolutionary game theory investigates the evolutionary fitness of alternative behaviors in a fixed and single decision problem. This paper instead focuses on decision criteria, rather than on simple behaviors, as the general behavioral rules under selection in the population: the evolutionary fitness of classic decision criteria for rational choice is analyzed through Monte Carlo simulations over various classes of decision problems. Overall, quantifying the uncertainty in a probabilistic way and maximizing expected utility turns out to be evolutionarily beneficial in (...) general. Minimizing regret also finds some evolutionary justifications in our results, while maximin seems to be always disadvantaged by differential selection. (shrink)

This paper focuses on tacit versus explicit uses of plural performance metrics as a primary methodological characteristic. This characteristic usefully distinguishes two schools of normative analysis and their approaches to normative interpretations of bounded rationality. Both schools of thought make normative claims about bounded rationality by comparing the performance of decision procedures using more than one performance metric. The consistency school makes tacit reference to performance metrics outside its primary axiomatic framework, but lexicographically promotes internal axiomatic consistency as (...) the primary, and in most cases sufficient, normative outcome with which to undertake welfare comparisons. The consistency school's axiomatization program, in both neoclassical and behavioral forms, pre-commits to welfare interpretations that follow a hierarchy of rationalities based on the stringency of restrictions that different axiomatizations impose on choice data. In contrast, the ecological rational.. (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)

In this paper, I examine a key issue affecting trust in the context of a computing environment, as it affects human agents and artificial agents. Specifically, the paper focuses on the role that "resource conservation" plays in an analysis of moral trust and epistemic trust involving agents. I will argue that resource conservation is a necessary condition in the definition of a moral trust relation, that there is a conceptual relationship between a moral trust relation and epistemic trust---that epistemic trust (...) is a necessary condition for moral trust---, and that a moral trust relation might provide a basic mechanism for the realization of ecological rationality in human agents. (shrink)

Previous studies have shown that people often use heuristics in making inferences and that subjective memory experiences, such as recognition or familiarity of objects, can be valid cues for inferences. So far, many researchers have used the binary choice task in which two objects are presented as alternatives (e.g., “Which city has the larger population, city A or city B?”). However, objects can be presented not only as alternatives but also in a question (e.g., “Which country is city X in, (...) country A or country B?”). In such a situation, people can make inferences based on the relationship between the object in the question and each object given as an alternative. In the present study, we call this type of task a “relationships‐comparison task.” We modeled the three inference strategies that people could apply to solve it (familiarity‐matching [FM; a new heuristic we propose in this study], familiarity heuristic [FH], and knowledge‐based inference [KI]) to examine people's inference processes. Through Studies 1, 2, and 3, we found that (a) people tended to rely on heuristics, and that FM (inferences based on similarity in familiarity between objects) well explained participants' inference patterns; (b) FM could work as an ecologically rational strategy for the relationships–comparison task since it could effectively reflect environmental structures, and that the use of FM could be highly replicable and robust; and (c) people could sometimes use a decision strategy like FM, even in their daily lives (consumer behaviors). The nature of the relationships–comparison task and human cognitive processes is discussed. (shrink)

This paper examines the adequacy of an evolutionary-oriented notion of rationality—ecological rationality—that has recently been proposed in economics. Ecological rationality is concerned with what it is rational to do, and in this sense is a version of what philosophers call ‘practical rationality’. Indeed, the question of the adequacy of ecological rationality as it is understood in the paper, is the question of whether ecological rationality is a genuine notion of practical (...) rationality. The paper first explicates and motivates the notion of ecological rationality by explicating the notion of practical rationality, grounding ecological rationality in an evolutionary approach to the emotions which is mainly illustrated by the example of fear, and outlining the reasons adduced in economics for generalizing ecological rationality beyond the emotions. The paper then argues that the raison d’être of practical rationality is first and foremost a specific role it plays in the explanation of behavior, or in telling why it has occurred. Finally, based on –, the paper argues that ecological rationality lacks a constitutive feature of practical rationality—namely, normativity—which is related to the latter’s basic explanatory role, and thus cannot be considered a genuine notion of practical rationality. While the paper focuses on the economic version of ecological rationality, its conclusions apply just as well to other, related, versions of the ecological notion that have been proposed in biology and evolutionary psychology. (shrink)

The notion of ecological rationality, although plausible, does not readily lead to testable predictions. This is illustrated with respect to heuristics in syllogistic reasoning. Several possible heuristics have been proposed but ecological rationality does not appear to offer a sensible rationale for choosing between these.

Abstract:The coronavirus pandemic has challenged the ability of countries to both protect personal freedoms and effectively counteract viral infections. Attempts to reduce viral vulnerability and increase immunity based on liberal or authoritarian principles seem to be either failing or succeeding at the price of eliminating freedoms altogether. The concept of social freedom, as an alternative to that of liberal autonomy, may provide a third alternative, integrating freedom with elements of social responsibility. However, I argue that it too will fail, since (...) all attempts to ensure immunity without challenging the exploitation of natural environments from where the virus originated do not go to the source of the problem. (shrink)

Traditional views of rationality posit general-purpose decision mechanisms based on logic or optimization. The study of ecological rationality focuses on uncovering the “adaptive toolbox” of domain-specific simple heuristics that real, computationally bounded minds employ, and explaining how these heuristics produce accurate decisions by exploiting the structures of information in the environments in which they are applied. Knowing when and how people use particular heuristics can facilitate the shaping of environments to engender better decisions.

For two decades, the integrated causal model of evolutionary psychology (EP) has constituted an interdisciplinary nucleus around which a single unified theoretical and empirical behavioral science has been crystallizing – while progressively resolving problems (such as defective logical and statistical reasoning) that bedevil Gintis's beliefs, preferences, and constraints (BPC) framework. Although both frameworks are similar, EP is empirically better supported, theoretically richer, and offers deeper unification. (Published Online April 27 2007).

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)

Research on “improper” linear models has shown that predetermined weighting schemes for the linear model, such as equally weighting all predictors, can be surprisingly accurate on cross-validation. We review recent advances that can characterize the optimal choice of an improper linear model. We extend this research to the understanding of fast and frugal heuristics, particularly to the ecologically rational goal of understanding in which task environments given heuristics are optimal. We demonstrate how to test this model using the Recognition Heuristic (...) and Take the Best heuristic, show how the model reconciles with the ecological rationality program, and discuss how our prescriptive, computational approach could be approximated by simpler mental rules that might be more descriptive. Echoing the arguments of van Rooij et al., we stress the virtue of having a computationally tractable model of strategy selection, even if one proposes that cognizers use a simpler heuristic process to approximate it. (shrink)

The paper outlines various concepts of rationality, their characteristics and consequences. In the first, most general part, the metaphysical, instrumental and discursive rationality is distinguished. The following part focuses on instrumental rationality and the rational choice theory and ordinal and cardinal utility, expected utility and game theory, respectively. All those concepts are summarised as being the most mathematically elegant and mostly decidable and helpful in the decision-making process. Giving primacy to individual preferences and withholding the judgment on (...) their “objective” value, they are also devoid of double standards. They are, however, strongly normative and weakly coincide with actual agents’ behaviour. Empirical findings on agents’ decision making seem to demonstrate their irrationality, unless we introduce into the analysis different concepts of rationality, namely based on costs efficient heuristics, inclusive fitness and ecological rationality. They are discussed respectively, and although they seem better to explain the set of humans’ seemingly irrational behaviour, they are likely week in predicting that behaviour. They are also losing their normative dimension and thus cease to be helpful in decision making. Applying the particular theory of rationality, either descriptively or normatively, seems to depend strongly on the environment, which can be characterised by its extension from a small to a large world. The more the small world’s features an environment reveals, the more effective is the application of the particular model of rationality. Beyond the small worlds, rule stochasticity, underspecification and misspecification and the only reasonable method are consecutive trials and errors, which eventually may reduce the large world to the small one. (shrink)

A working assumption that processes of natural and cultural evolution have tailored the mind to fit the demands and structure of its environment begs the question: how are we to characterize the structure of cognitive environments? Decision problems faced by real organisms are not like simple multiple-choice examination papers. For example, some individual problems may occur much more frequently than others, whilst some may carry much more weight than others. Such considerations are not taken into account when (i) the performance (...) of candidate cognitive mechanisms is assessed by employing a simple accuracy metric that is insensitive to the structure of the decision-maker's environment, and (ii) reason is defined as the adherence to internalist prescriptions of classical rationality. Here we explore the impact of frequency and significance structure on the performance of a range of candidate decision-making mechanisms. We show that the character of this impact is complex, since structured environments demand that decision-makers trade off general performance against performance on important subsets of test items. As a result, environment structure obviates internalist criteria of rationality. Failing to appreciate the role of environment structure in shaping cognition can lead to mischaracterising adaptive behavior as irrational. (shrink)

There has been significant debate over both the imiplications and the merit of Leopold's land ethic. I consider the two most prominent objections and a resolution to them. One of these objections is that, far from being an alternative to an “economic” or cost‐benefit perspective on environmental issues, Leopold's land ethic merely broadens the range of economic considerations to be used in addressing such issues. The other objection is that the land ethic is a form of “environmental fascism” because it (...) subordinates the welfare of humans to the good of the ecological whole. I argue that these objections are based on a fundamental misunderstanding of his theory by advocates and detractors alike. The land ethic is centrally a psychological theory of moral development and ecological rationality that advocates a shift in the way that environmental problems are conceptualized and approached. (shrink)

There has been significant debate over both the imiplications and the merit of Leopold's land ethic. I consider the two most prominent objections and a resolution to them. One of these objections is that, far from being an alternative to an “economic” or cost‐benefit perspective on environmental issues, Leopold's land ethic merely broadens the range of economic considerations to be used in addressing such issues. The other objection is that the land ethic is a form of “environmental fascism” because it (...) subordinates the welfare of humans to the good of the ecological whole. I argue that these objections are based on a fundamental misunderstanding of his theory by advocates and detractors alike. The land ethic is centrally a psychological theory of moral development and ecological rationality that advocates a shift in the way that environmental problems are conceptualized and approached. (shrink)

Dr Chaudhury is concerned to defend what is responsible and hopeful in contemporary ecological thinking, but to avoid the trap of denying that any positive contribution can be made by western science and technology. Critical rationalists do not need to agree with her suggestions and recommendations in order to welcome her positioning of environmental issues alongside the traditional human and political debates about freedom. The Indian perspective that informs this book is particularly impressive and interesting. David Miller (University of (...) Warwick) Professor Mahasweta Chaudhury is Professor for Philosophy at Calcutta University in India. In the late sixties she studied at the London School of Economics under Karl Popper, John Watkins, Alan Musgrave and Imre Lakatos. (shrink)

The principal findings of experimental economics are that impersonal exchange in markets converges in repeated interaction to the equilibrium states implied by economic theory, under information conditions far weaker than specified in the theory. In personal, social, and economic exchange, as studied in two-person games, cooperation exceeds the prediction of traditional game theory. This book relates these two findings to field studies and applications and integrates them with the main themes of the Scottish Enlightenment and with the thoughts of F. (...) A. Hayek. (shrink)

There are two prominent viewpoints regarding the nature of rationality and how it should be evaluated in situations of interest: the traditional axiomatic approach and the newer ecological rationality. An obstacle to comparing and evaluating these seemingly opposite approaches is that they employ different language and formalisms, ask different questions, and are at different stages of development. I adapt a formal framework known as SCOP to address this problem by providing a comprehensive common framework in which both (...) approaches may be defined and compared. The main result is that the axiomatic and ecological approaches are in far greater agreement on fundamental issues than has been appreciated; this is supported by a pair of theorems to the effect that they will make accordant rationality judgements when forced to evaluate the same situation. I conclude that ecological rationality has some subtle advantages, but that we should move past the issues currently dominating the discussion of rationality. (shrink)

We address the oft-repeated criticism that the demands which the rational choice approach makes on the knowledge and cognition of a decision-maker are way beyond the capabilities of typical human intelligence. Our key finding is that it may be possible to arrive at this ideal of rationality by means of cognitively less demanding, heuristic-based ecological reasoning that draws on information about others’ choices in the DM’s environment. Formally, we propose a choice procedure under which, in any choice problem, (...) the DM, first, uses this information to shortlist a set of alternatives. The DM does this shortlisting by a mental process of categorization, whereby she draws similarities with certain societal members—the ingroup—and distinctions from others—the outgroup—and considers those alternatives that are similar to ingroup members’ choices. Then, she chooses from this shortlisted set by applying her preferences, which may be incomplete owing to limitations of knowledge. We show that, if a certain homophily condition connecting the DM’s preferences with her ingroup–outgroup categorization holds, then the procedure never leads the DM to making bad choices. If, in addition, a certain shortlisting consistency condition holds vis-a-vis non-comparable alternatives under the DM’s preferences, then the procedure results in rational choices. (shrink)

This paper discusses the ecological case for epistemic innocence: does biased cognition have evolutionary benefits, and if so, does that exculpate human reasoners from irrationality? Proponents of ‘ecological rationality’ have challenged the bleak view of human reasoning emerging from research on biases and fallacies. If we approach the human mind as an adaptive toolbox, tailored to the structure of the environment, many alleged biases and fallacies turn out to be artefacts of narrow norms and artificial set-ups. However, (...) we argue that putative demonstrations of ecological rationality involve subtle locus shifts in attributions of rationality, conflating the adaptive rationale of heuristics with our own epistemic credentials. By contrast, other cases also involve an ecological reframing of human reason, but do not involve such problematic locus shifts. We discuss the difference between these cases, bringing clarity to the rationality debate. (shrink)