Positive and Negative Implications of the Causal Illusion
Total Page:16
File Type:pdf, Size:1020Kb
Load more
Recommended publications
-
Read Volume 100 : 25Th October 2015
Read Volume 100 : 25th October 2015 Forum for Multidisciplinary Thinking !1 Read Volume 100 : 25th October 2015 Contact Page 3: Gamblers, Scientists and the Mysterious Hot Hand By George Johnsonoct Page 8: Daniel Kahneman on Intuition and the Outside View By Elliot Turner Page 13: Metaphors Are Us: War, murder, music, art. We would have none without metaphor By Robert Sapolsky Forum for Multidisciplinary Thinking !2 Read Volume 100 : 25th October 2015 Gamblers, Scientists and the Mysterious Hot Hand By George Johnsonoct 17 October 2015 IN the opening act of Tom Stoppard’s play “Rosencrantz and Guildenstern Are Dead,” the two characters are passing the time by betting on the outcome of a coin toss. Guildenstern retrieves a gold piece from his bag and flips it in the air. “Heads,” Rosencrantz announces as he adds the coin to his growing collection. Guil, as he’s called for short, flips another coin. Heads. And another. Heads again. Seventy-seven heads later, as his satchel becomes emptier and emptier, he wonders: Has there been a breakdown in the laws of probability? Are supernatural forces intervening? Have he and his friend become stuck in time, reliving the same random coin flip again and again? Eighty-five heads, 89… Surely his losing streak is about to end. Psychologists who study how the human mind responds to randomness call this the gambler’s fallacy — the belief that on some cosmic plane a run of bad luck creates an imbalance that must ultimately be corrected, a pressure that must be relieved. After several bad rolls, surely the dice are primed to land in a more advantageous way. -
A Task-Based Taxonomy of Cognitive Biases for Information Visualization
A Task-based Taxonomy of Cognitive Biases for Information Visualization Evanthia Dimara, Steven Franconeri, Catherine Plaisant, Anastasia Bezerianos, and Pierre Dragicevic Three kinds of limitations The Computer The Display 2 Three kinds of limitations The Computer The Display The Human 3 Three kinds of limitations: humans • Human vision ️ has limitations • Human reasoning 易 has limitations The Human 4 ️Perceptual bias Magnitude estimation 5 ️Perceptual bias Magnitude estimation Color perception 6 易 Cognitive bias Behaviors when humans consistently behave irrationally Pohl’s criteria distilled: • Are predictable and consistent • People are unaware they’re doing them • Are not misunderstandings 7 Ambiguity effect, Anchoring or focalism, Anthropocentric thinking, Anthropomorphism or personification, Attentional bias, Attribute substitution, Automation bias, Availability heuristic, Availability cascade, Backfire effect, Bandwagon effect, Base rate fallacy or Base rate neglect, Belief bias, Ben Franklin effect, Berkson's paradox, Bias blind spot, Choice-supportive bias, Clustering illusion, Compassion fade, Confirmation bias, Congruence bias, Conjunction fallacy, Conservatism (belief revision), Continued influence effect, Contrast effect, Courtesy bias, Curse of knowledge, Declinism, Decoy effect, Default effect, Denomination effect, Disposition effect, Distinction bias, Dread aversion, Dunning–Kruger effect, Duration neglect, Empathy gap, End-of-history illusion, Endowment effect, Exaggerated expectation, Experimenter's or expectation bias, -
Power and Illusory Control
Research Paper No. 2009 Illusory Control: A Generative Force Behind Power’s Far-Reaching Effects Nathanael J. Fast Deborah H. Gruenfeld Niro Sivanathan Adam D. Galinsky December 2008 R ESEARCH P APER S ERIES Electronic copy available at: http://ssrn.com/abstract=1314952 Running Head: POWER AND ILLUSORY CONTROL Illusory Control: A Generative Force Behind Power’s Far-Reaching Effects Nathanael J. Fast and Deborah H Gruenfeld Stanford University Niro Sivanathan London Business School Adam D. Galinsky Northwestern University *In press at Psychological Science Please address correspondence concerning this article to Nathanael J. Fast, Department of Organizational Behavior, Stanford University, 518 Memorial Way, Stanford, CA 94305; email: [email protected]. Electronic copy available at: http://ssrn.com/abstract=1314952 Power and Illusory Control 2 Abstract Three experiments demonstrated that the experience of power leads to an illusion of personal control. Regardless of whether power was experientially primed (Experiments 1 and 3) or manipulated through manager-subordinate roles (Experiment 2), it led to perceived control over outcomes that were beyond the reach of the powerholder. Furthermore, this illusory control mediated the influence of power on several self-enhancement and approach-related effects found in the power literature, including optimism (Experiment 2), self-esteem (Experiment 3), and action-orientation (Experiment 3), demonstrating its theoretical importance as a generative cause and driving force behind many of power’s far-reaching effects. A fourth experiment ruled out an alternative explanation: that positive mood, rather than illusory control, is at the root of power’s effects. The discussion considers implications for existing and future research on the psychology of power, perceived control, and positive illusions. -
The Art of Thinking Clearly
For Sabine The Art of Thinking Clearly Rolf Dobelli www.sceptrebooks.co.uk First published in Great Britain in 2013 by Sceptre An imprint of Hodder & Stoughton An Hachette UK company 1 Copyright © Rolf Dobelli 2013 The right of Rolf Dobelli to be identified as the Author of the Work has been asserted by him in accordance with the Copyright, Designs and Patents Act 1988. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means without the prior written permission of the publisher, nor be otherwise circulated in any form of binding or cover other than that in which it is published and without a similar condition being imposed on the subsequent purchaser. A CIP catalogue record for this title is available from the British Library. eBook ISBN 978 1 444 75955 6 Hardback ISBN 978 1 444 75954 9 Hodder & Stoughton Ltd 338 Euston Road London NW1 3BH www.sceptrebooks.co.uk CONTENTS Introduction 1 WHY YOU SHOULD VISIT CEMETERIES: Survivorship Bias 2 DOES HARVARD MAKE YOU SMARTER?: Swimmer’s Body Illusion 3 WHY YOU SEE SHAPES IN THE CLOUDS: Clustering Illusion 4 IF 50 MILLION PEOPLE SAY SOMETHING FOOLISH, IT IS STILL FOOLISH: Social Proof 5 WHY YOU SHOULD FORGET THE PAST: Sunk Cost Fallacy 6 DON’T ACCEPT FREE DRINKS: Reciprocity 7 BEWARE THE ‘SPECIAL CASE’: Confirmation Bias (Part 1) 8 MURDER YOUR DARLINGS: Confirmation Bias (Part 2) 9 DON’T BOW TO AUTHORITY: Authority Bias 10 LEAVE YOUR SUPERMODEL FRIENDS AT HOME: Contrast Effect 11 WHY WE PREFER A WRONG MAP TO NO -
Uncertainty in the Hot Hand Fallacy: Detecting Streaky Alternatives in Random Bernoulli Sequences
UNCERTAINTY IN THE HOT HAND FALLACY: DETECTING STREAKY ALTERNATIVES IN RANDOM BERNOULLI SEQUENCES By David M. Ritzwoller Joseph P. Romano Technical Report No. 2019-05 August 2019 Department of Statistics STANFORD UNIVERSITY Stanford, California 94305-4065 UNCERTAINTY IN THE HOT HAND FALLACY: DETECTING STREAKY ALTERNATIVES IN RANDOM BERNOULLI SEQUENCES By David M. Ritzwoller Joseph P. Romano Stanford University Technical Report No. 2019-05 August 2019 Department of Statistics STANFORD UNIVERSITY Stanford, California 94305-4065 http://statistics.stanford.edu Uncertainty in the Hot Hand Fallacy: Detecting Streaky Alternatives in Random Bernoulli Sequences David M. Ritzwoller, Stanford University∗ Joseph P. Romano, Stanford University August 22, 2019 Abstract We study a class of tests of the randomness of Bernoulli sequences and their application to analyses of the human tendency to perceive streaks as overly representative of positive dependence—the hot hand fallacy. In particular, we study tests of randomness (i.e., that tri- als are i.i.d.) based on test statistics that compare the proportion of successes that directly follow k consecutive successes with either the overall proportion of successes or the pro- portion of successes that directly follow k consecutive failures. We derive the asymptotic distributions of these test statistics and their permutation distributions under randomness and under general models of streakiness, which allows us to evaluate their local asymp- totic power. The results are applied to revisit tests of the hot hand fallacy implemented on data from a basketball shooting experiment, whose conclusions are disputed by Gilovich, Vallone, and Tversky (1985) and Miller and Sanjurjo (2018a). We establish that the tests are insufficiently powered to distinguish randomness from alternatives consistent with the variation in NBA shooting percentages. -
Surprised by the Gambler's and Hot Hand Fallacies?
Surprised by the Gambler's and Hot Hand Fallacies? A Truth in the Law of Small Numbers Joshua B. Miller and Adam Sanjurjo ∗yz September 24, 2015 Abstract We find a subtle but substantial bias in a standard measure of the conditional dependence of present outcomes on streaks of past outcomes in sequential data. The mechanism is a form of selection bias, which leads the empirical probability (i.e. relative frequency) to underestimate the true probability of a given outcome, when conditioning on prior outcomes of the same kind. The biased measure has been used prominently in the literature that investigates incorrect beliefs in sequential decision making|most notably the Gambler's Fallacy and the Hot Hand Fallacy. Upon correcting for the bias, the conclusions of some prominent studies in the literature are reversed. The bias also provides a structural explanation of why the belief in the law of small numbers persists, as repeated experience with finite sequences can only reinforce these beliefs, on average. JEL Classification Numbers: C12; C14; C18;C19; C91; D03; G02. Keywords: Law of Small Numbers; Alternation Bias; Negative Recency Bias; Gambler's Fal- lacy; Hot Hand Fallacy; Hot Hand Effect; Sequential Decision Making; Sequential Data; Selection Bias; Finite Sample Bias; Small Sample Bias. ∗Miller: Department of Decision Sciences and IGIER, Bocconi University, Sanjurjo: Fundamentos del An´alisisEcon´omico, Universidad de Alicante. Financial support from the Department of Decision Sciences at Bocconi University, and the Spanish Ministry of Economics and Competitiveness under project ECO2012-34928 is gratefully acknowledged. yBoth authors contributed equally, with names listed in alphabetical order. -
Communication Science to the Public
David M. Berube North Carolina State University ▪ HOW WE COMMUNICATE. In The Age of American Unreason, Jacoby posited that it trickled down from the top, fueled by faux-populist politicians striving to make themselves sound approachable rather than smart. (Jacoby, 2008). EX: The average length of a sound bite by a presidential candidate in 1968 was 42.3 seconds. Two decades later, it was 9.8 seconds. Today, it’s just a touch over seven seconds and well on its way to being supplanted by 140/280- character Twitter bursts. ▪ DATA FRAMING. ▪ When asked if they truly believe what scientists tell them, NEW ANTI- only 36 percent of respondents said yes. Just 12 percent expressed strong confidence in the press to accurately INTELLECTUALISM: report scientific findings. ▪ ROLE OF THE PUBLIC. A study by two Princeton University researchers, Martin TRENDS Gilens and Benjamin Page, released Fall 2014, tracked 1,800 U.S. policy changes between 1981 and 2002, and compared the outcome with the expressed preferences of median- income Americans, the affluent, business interests and powerful lobbies. They concluded that average citizens “have little or no independent influence” on policy in the U.S., while the rich and their hired mouthpieces routinely get their way. “The majority does not rule,” they wrote. ▪ Anti-intellectualism and suspicion (trends). ▪ Trump world – outsiders/insiders. ▪ Erasing/re-writing history – damnatio memoriae. ▪ False news. ▪ Infoxication (CC) and infobesity. ▪ Aggregators and managed reality. ▪ Affirmation and confirmation bias. ▪ Negotiating reality. ▪ New tribalism is mostly ideational not political. ▪ Unspoken – guns, birth control, sexual harassment, race… “The amount of technical information is doubling every two years. -
Impact of Illusion of Control on Perceived Efficiency in Pakistani Financial Markets
Impact of Illusion…. Abasyn Journal of Social Sciences Vol. 5 No. 2 Impact of Illusion of Control on Perceived Efficiency in Pakistani Financial Markets Sidra Ajmal1 Maria Mufti2 Dr. Zulfiqar Ali Shah3 Abstract The purpose of this study is to test impact of illusion of control on perceived market efficiency. On the basis of literature review, questionnaire was developed. The study is carried out on sample of convenience of investors, financial analyst and finance scholars of Islamabad/ Rawalpindi. Questionnaire comprises of 15 items related to three forms of market efficiency and particular bias (illusion of control). The findings of the regression show significant results. This means that illusion of control has impact on perceived efficiency of Pakistani financial market. This study focuses on only individual located in Islamabad/Rawalpindi, and the sample size is also small due to time constraints. Further research can be done on a bigger scale to get the more general conclusions. This study will help investors to identify their biases and then formulate different strategies to reduce their irrational behavior. Key words: Illusion of control, market efficiency 1Sidra Ajmal, MS (Scholar), SZABIST, Islamabad. 2Maria Mufti, MS (Scholar), SZABIST, Islamabad. 3Dr. Zulfiqar Ali Shah, Associate Professor, SZABIST, Islamabad. Illusion of control is a psychological term referring to the tendency of people to overestimate their abilities to control any event, where as market efficiency is the phenomena primarily explained by Fama (1970). He had created a hypothesis that Sidra Ajmal, Maria Mufti, & Dr. Zulfiqar Ali Shah 100 Impact of Illusion…. Abasyn Journal of Social Sciences Vol. 5 No. -
Social Psychology Glossary
Social Psychology Glossary This glossary defines many of the key terms used in class lectures and assigned readings. A Altruism—A motive to increase another's welfare without conscious regard for one's own self-interest. Availability Heuristic—A cognitive rule, or mental shortcut, in which we judge how likely something is by how easy it is to think of cases. Attractiveness—Having qualities that appeal to an audience. An appealing communicator (often someone similar to the audience) is most persuasive on matters of subjective preference. Attribution Theory—A theory about how people explain the causes of behavior—for example, by attributing it either to "internal" dispositions (e.g., enduring traits, motives, values, and attitudes) or to "external" situations. Automatic Processing—"Implicit" thinking that tends to be effortless, habitual, and done without awareness. B Behavioral Confirmation—A type of self-fulfilling prophecy in which people's social expectations lead them to behave in ways that cause others to confirm their expectations. Belief Perseverance—Persistence of a belief even when the original basis for it has been discredited. Bystander Effect—The tendency for people to be less likely to help someone in need when other people are present than when they are the only person there. Also known as bystander inhibition. C Catharsis—Emotional release. The catharsis theory of aggression is that people's aggressive drive is reduced when they "release" aggressive energy, either by acting aggressively or by fantasizing about aggression. Central Route to Persuasion—Occurs when people are convinced on the basis of facts, statistics, logic, and other types of evidence that support a particular position. -
Infographic I.10
The Digital Health Revolution: Leaving No One Behind The global AI in healthcare market is growing fast, with an expected increase from $4.9 billion in 2020 to $45.2 billion by 2026. There are new solutions introduced every day that address all areas: from clinical care and diagnosis, to remote patient monitoring to EHR support, and beyond. But, AI is still relatively new to the industry, and it can be difficult to determine which solutions can actually make a difference in care delivery and business operations. 59 Jan 2021 % of Americans believe returning Jan-June 2019 to pre-coronavirus life poses a risk to health and well being. 11 41 % % ...expect it will take at least 6 The pandemic has greatly increased the 65 months before things get number of US adults reporting depression % back to normal (updated April and/or anxiety.5 2021).4 Up to of consumers now interested in telehealth going forward. $250B 76 57% of providers view telehealth more of current US healthcare spend % favorably than they did before COVID-19.7 could potentially be virtualized.6 The dramatic increase in of Medicare primary care visits the conducted through 90% $3.5T telehealth has shown longevity, with rates in annual U.S. health expenditures are for people with chronic and mental health conditions. since April 2020 0.1 43.5 leveling off % % Most of these can be prevented by simple around 30%.8 lifestyle changes and regular health screenings9 Feb. 2020 Apr. 2020 OCCAM’S RAZOR • CONJUNCTION FALLACY • DELMORE EFFECT • LAW OF TRIVIALITY • COGNITIVE FLUENCY • BELIEF BIAS • INFORMATION BIAS Digital health ecosystems are transforming• AMBIGUITY BIAS • STATUS medicineQUO BIAS • SOCIAL COMPARISONfrom BIASa rea• DECOYctive EFFECT • REACTANCEdiscipline, • REVERSE PSYCHOLOGY • SYSTEM JUSTIFICATION • BACKFIRE EFFECT • ENDOWMENT EFFECT • PROCESSING DIFFICULTY EFFECT • PSEUDOCERTAINTY EFFECT • DISPOSITION becoming precise, preventive,EFFECT • ZERO-RISK personalized, BIAS • UNIT BIAS • IKEA EFFECT and • LOSS AVERSION participatory. -
Gambler's Fallacy, Hot Hand Belief, and the Time of Patterns
Judgment and Decision Making, Vol. 5, No. 2, April 2010, pp. 124–132 Gambler’s fallacy, hot hand belief, and the time of patterns Yanlong Sun∗ and Hongbin Wang University of Texas Health Science Center at Houston Abstract The gambler’s fallacy and the hot hand belief have been classified as two exemplars of human misperceptions of random sequential events. This article examines the times of pattern occurrences where a fair or biased coin is tossed repeatedly. We demonstrate that, due to different pattern composition, two different statistics (mean time and waiting time) can arise from the same independent Bernoulli trials. When the coin is fair, the mean time is equal for all patterns of the same length but the waiting time is the longest for streak patterns. When the coin is biased, both mean time and waiting time change more rapidly with the probability of heads for a streak pattern than for a non-streak pattern. These facts might provide a new insight for understanding why people view streak patterns as rare and remarkable. The statistics of waiting time may not justify the prediction by the gambler’s fallacy, but paying attention to streaks in the hot hand belief appears to be meaningful in detecting the changes in the underlying process. Keywords: gambler’s fallacy; hot hand belief; heuristics; mean time; waiting time. 1 Introduction is the representativeness heuristic, which attributes both the gambler’s fallacy and the hot hand belief to a false The gambler’s fallacy and the hot hand belief have been belief of the “law of small numbers” (Gilovich, et al., classified as two exemplars of human misperceptions of 1985; Tversky & Kahneman, 1971). -
Effects of Mindset on Positive Illusions
EffectEffectss ooff MindseMindsett oonn PositivPositivee IllusionIllusionss ShelleSheJleyy EE.. TayloTaylorr PetePeterr MM.. GollwitzeGoUwitzerr UniversitUniversityy oofCalifomia,f California, LoLoss AngeleAngeless UniversitUniversityy ooff KonstanKonstanzz SS.. EE.. TayloTayklrandr and JJ.. DD.. Brown'Brown'ss (1988(1988)) positioposilionn thalhalt mentallmentallyy healthhealthyy peoplpoopIee exhibiexhibitt positivpositivee illusioni11lol5ionss raiseraisess aI dilemmadikmma:: HowHow dodo pewitpeople funC1Wnfunction effectivelyeffectively ifthc:irif their perceptionsperceptions arcare positivelypositively biased?biased? UsingUsing Gollwitzer'Go/lwiucr'ss deliberative-implementadeliberative-implementall mindseffiindsett distinctiondistinction,, wv.ee assesseassessedd whethewhetherr peoplpeoplee iinn a deliberdeliber- ativativee mindsemioosett shoshoww leslesss evidenceevidence ofof positivpositivee illusionillusionss thathann peoplpc~e inin anan implementalimplemental mindsetmind$Cl... ParticPartk·- ipantipanlSs completecompletedd aa mindsemindsett tastaskk anandd assessmentassessmentss ooff moodmood,, self-perceptionsself-perceptions,, anandd perceiveperceivedd (invul(in)vul- nerabilitnerabilityy t10o riskrisk.. DeliberatioDeliberationn leledd tloworsenedo worsened moodmood,, greatevealerr perceiveperceivedd riskrisk,, anandd poorepoorerr self-percepself.percep- tionstiool,, relativrelativee ttoo implementationimplementation;; controcontroll (n(noo mindsetmindset)) participantparticipantss typicalltypicallyy scorescoredd iinn betweenbet~n.