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Thinking and Deciding

Thinking and Deciding

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160 DESCRIPTIVE THEORY OF PROBABILITY JUDGMENT<br />

physics discussed in Chapter 1. Evidence of bias in averaging is evidence of a need<br />

for education — but the kind of education in question is specific to probability.<br />

The important aspect of this view is its claim that biases are specific to calculations<br />

with numerical probabilities, as opposed to thinking or belief formation in<br />

general. It is, in my opinion, irrelevant to questions of rationality whether a bias<br />

results from mere ignorance or from something else (such as, perhaps, unwillingness<br />

to use rational methods even after learning how to use them). Rational methods are<br />

those methods of thinking that help people achieve their own goals (or the goals they<br />

ought to have). The most important of these methods are those that can be used in<br />

all thinking. If an irrational bias that affects all thinking — such as the lack of active<br />

open-mindedness — results from ignorance about rational thinking itself, the bias<br />

is still irrational, because it prevents people from achieving their goals. Therefore,<br />

the important part of Von Winterfeldt <strong>and</strong> Edwards’s argument is that the biases are<br />

specific to numerical calculation.<br />

That view holds for averaging but not for all the biases. Some of the ones that we<br />

have observed reflect two central biases that prevent good thinking in general: insufficient<br />

search, or the failure to consider alternative possibilities, goals, <strong>and</strong> additional<br />

evidence; <strong>and</strong> favoritism toward initially favored possibilities. These central biases<br />

seemed to be involved in overconfidence <strong>and</strong> in hindsight bias. They may be involved<br />

in representativeness bias as well, since information about prior probabilities<br />

could be a neglected source of evidence against initial conclusions. If people thought<br />

more thoroughly about what evidence was needed, they could take prior probabilities<br />

into account, whether or not they received special instruction in probability. Likewise,<br />

if people thought critically about their own heuristics, by looking for cases in<br />

which the heuristics are misleading, they could learn what these cases are <strong>and</strong> what<br />

other heuristics are more useful. These central biases partly account for other more<br />

specific biases, because they st<strong>and</strong> in the way of the learning that might correct them.<br />

For most people, however, special instruction, as well as good thinking, is required<br />

to learn about probability theory. Probability is already taught as part of<br />

school mathematics. When our naive theories can have harmful effects, more systematic<br />

instruction may be warranted. Such instruction could include such topics<br />

as the relevance of prior probabilities <strong>and</strong> the dangers of hindsight, availability, <strong>and</strong><br />

extreme confidence.

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