'This excellent collection provides the reader with a comprehensive coverage of findings and theories about how people encode and summarize frequency information. While it is a smorgasbord of self-contained chapters with little cross-referencing, the high quality of the vast majority of these chapters yields a cognitive feast. They are written by eminent researchers who have opted to present both recent results and summaries of their most important work - certainly not the feared secondary idea or paper submitted because it would (...) be easier to publish in an edited volume than in critically peer reviewed journal.' Robyn M. Dawes, Charles J. Queenan, Jr. University Professor, Department of Social and Decision Sciences, Carnegie Mellon University, USAFrom childhood, each of us develops our own personal set of theories and beliefs about the world in which we live. Given the impossibility of knowing about every event that can ever take place, we use cognitive short cuts to try to predict and make sense of the world around us. One of the fundamental pieces of information we use to predict future events, and make sense of past events, is 'frequency' - how often has such an event happened to us, or how often have we observed a particular event? With such information we will make inferences about the likelihood of its future appearance. We will make judgements, assess risk, or even consumer decisions, on the basis of this information. We also form associations between events that frequently occur together, and even attribute causality between one event and the other as a result of their simultaneous appearance. How is it though that we process such information? How does our brain deal with information on frequencies? How does such information influence our behaviour, beliefs, and judgements? Important new findings on this topic have come from research within both social and cognitive psychology, though until now, never brought together in a single volume. This is the first book to bring together two disparate literatures on this topic - drawing on research from both cognitive psychology and social psychology. Including contributions from world leaders in the field, this is a timely, and long overdue volume on this topic. (shrink)

Hertwig and Ortmann suggest paying participants contingent upon performance in order to increase the thoroughness they devote to a decision task. We argue that monetary incentives can yield a number of unintended effects including distortions of the subjective representation of the task and impaired performance. Therefore, we conclude that performance-contingent payment should not be generally employed in judgment and decision research.

Rationality in decision making is commonly assessed by comparing choice performance against normative standards. We argue that such a performance-centered approach blurs the distinction between rational choice and adaptive behavior. Instead, rational choice should be assessed with regard to the way individuals make analytic decisions. We suggest that analytic decisions can be made in two different modes in which control processes are directed at different levels. In a RUN mode, thought is directed at controlling the operation of a decision strategy. (...) In the JUMP mode, the individual analyses the interpretation of the decision situation as well as the appropriateness of alternative strategies. We suggest that a decision should be considered “rational” when an individual is able to switch between these modes and balance their interaction. (shrink)

Hertwig and Ortmann suggest paying participants contingent upon performance in order to increase the thoroughness they devote to a decision task. We argue that monetary incentives can yield a number of unintended effects including distortions of the subjective representation of the task and impaired performance. Therefore, we conclude that performance-contingent payment should not be generally employed in judgment and decision research.