The illusion of replacement in research into the development of thinking biases: the case of the conjunction fallacy

Numeracy, gist, literal thinking and the value of nothing in decision making

The onus on the average person is greater than ever before to make sense of large amounts of readily accessible quantitative information, but the ability and confidence to do so are frequently lacking. Many people lack practical mathematical skills that are essential for evaluating risks, probabilities and numerical outcomes such as survival rates for medical treatments, income from retirement savings plans or monetary damages in civil trials. In this Review, we integrate research on objective and subjective numeracy, focusing on cognitive and metacognitive factors that distort human perceptions and foment systematic biases in judgement and decision making. Paradoxically, an important implication of this research is that a literal focus on objective numbers and mechanical number crunching is misguided. Numbers can be a matter of life and death but a person who uses rote strategies (verbatim representations) cannot take advantage of the information contained in the numbers because 'rote' strategies are, by definition, processing without meaning. Verbatim representations (verbatim is only surface form, not meaning) treat numbers as data as opposed to information. We highlight a contrasting approach of gist extraction: organizing numbers meaningfully, interpreting them qualitatively and making meaningful inferences about them. Efforts to improve numerical cognition and its practical applications can benefit from emphasizing the qualitative meaning of numbers in context - the gist - building on the strengths of humans as intuitive mathematicians. Thus, we conclude by reviewing evidence that gist training facilitates transfer to new contexts and, because it is more durable, longer-lasting improvements in decision making.

Supporting Health and Medical Decision Making: Findings and Insights from Fuzzy-Trace Theory

HIGHLIGHTS

Fuzzy-trace theory (FTT) supports practical approaches to improving health and medicine.FTT differs in important respects from other theories of decision making, which has implications for how to help patients, providers, and health communicators.Gist mental representations emphasize categorical distinctions, reflect understanding in context, and help cue values relevant to health and patient care.Understanding the science behind theory is crucial for evidence-based medicine.

Experiencing statistical information improves children's and adults' inferences

How good are people's statistical intuitions? Recent research has highlighted that sequential experience of statistical information improves adults' statistical intuitions relative to situations where this information is described. Yet little is known about whether this is also the case for children's statistical intuitions. In a study with 100 children (8-11 years old) and 100 adults (19-35 years old), we found that sequentially experiencing statistical information improved both adults' and children's inferences in two paradigmatic reasoning problems: conjunction and Bayesian reasoning problems. Moreover, adults' statistical competencies when they learned statistical information through description were surpassed by children's inferences when they learned through experience. We conclude that experience of statistical information plays a key role in shaping children's reasoning under uncertainty-a conclusion that has important implications for education policy.

How Fuzzy-trace Theory Predicts Development of Risky Decision Making, with Novel Extensions to Culture and Reward Sensitivity

Comprehensive meta-analyses of risky decision making in children, adolescents, and adults have revealed that age trends in disambiguated laboratory tasks confirmed fuzzy-trace theory's prediction that preference for risk decreases monotonically from childhood to adulthood. These findings are contrary to predictions of dual systems or neurobiological imbalance models. Assumptions about increasing developmental reliance on mental representations of the gist of risky options are essential to account for this developmental trend. However, dual systems theory appropriately emphasizes how cultural context changes behavioral manifestation of risk preferences across age and neurobiological imbalance models appropriately emphasize developmental changes in reward sensitivity. All of the major theories include the assumption of increasing behavioral inhibition. Here, we integrate these theoretical constructs-representation, cultural context, reward sensitivity, and behavioral inhibition-to provide a novel framework for understanding and improving risky decision making in youth. We also discuss the roles of critical tests, scientific falsification, disambiguating assessments of psychological and neurological processes, and the misuse of such concepts as ecological validity and reverse inference. We illustrate these concepts by extending fuzzy-trace theory to explain why youth are a major conduit of viral infections, including the virus that causes COVID-19. We conclude by encouraging behavioral scientists to embrace new ways of thinking about risky decision making that go beyond traditional stereotypes about adolescents and that go beyond conceptualizing ideal decision making as trading off degrees of risk and reward.

Adolescents' base rate judgments, metastrategic understanding, and stereotype endorsement

Developmental reversals are counterintuitive age trends wherein age is negatively related to optimal responding. We addressed the claims that reversals in judgments and decisions are unlikely between late childhood and adolescence. Children and adolescents indicated the extent to which they endorsed stereotypes salient to adolescents, responded to problems in which base rate evidence conflicted with evidence based on anecdotal evidence (i.e., anecdotal problems) or stereotype-relevant evidence (i.e., stereotypical problems), and indicated the basis for their responses. Normative responses increased with age on anecdotal problems and decreased with age on stereotypical problems, indicating a developmental reversal on the latter problem type. Metaprocedural competence mediated the age-related increases on anecdotal problems and moderated the age-related declines on stereotypical problems; furthermore, on stereotypical problems, endorsement of relevant stereotypes mediated the age-related declines in performance. Findings are discussed from a dual-process perspective that emphasizes gist-based problem representations, a "metacognitive gap," and age-related dissociations between stereotypical problems and metaprocedural competence.

When Irrational Biases Are Smart: A Fuzzy-Trace Theory of Complex Decision Making

I take a decision-making approach to consider ways of addressing the "unresolved and dramatic problems in the world". Traditional approaches to good decision-making are reviewed. These approaches reduce complex decisions to tradeoffs between magnitudes of probabilities, and outcomes in which the quantity and precision of information are key to making good decisions. I discuss a contrasting framework, called "fuzzy-trace theory", which emphasizes understanding the simple gist of options and applying core social and moral values. Importantly, the tendency to rely on meaningful but simple gist increases from childhood to adulthood (or, in adulthood, as people gain experience in a domain), so that specific irrational biases grow with knowledge and experience. As predicted theoretically, these violations of rationality in the traditional sense are associated empirically with healthier and more adaptive outcomes. Thus, interventions that help decision makers understand the essential gist of their options and how it connects to core values are practical approaches to reducing "unresolved and dramatic problems in the world" one decision at a time.