Companies are increasingly asked to provide innovative solutions to deep-seated problems of human misery, even as economic theory instructs managers to focus on maximizing their shareholders' wealt

Misery Loves Companies: Rethinking Social Initiatives by Business:

A review is presented of the book “Heuristics and Biases: The Psychology of Intuitive Judgment,” edited by Thomas Gilovich, Dale Griffin, and Daniel Kahneman.

Heuristics and Biases: The Psychology of Intuitive Judgment

Perhaps the simplest and the most basic qualitative law of probability is the conjunction rule: The probability of a conjunction, P (A&B) cannot exceed the probabilities of its constituents, P (A) and P (B), because the extension (or the possibility set) of the conjunction is included in the extension of its constituents. Judgments under uncertainty, however, are often mediated by intuitive heuristics that are not bound by the conjunction rule. A conjunction can be more representative than one of its constituents, and instances of a specific category can be easier to imagine or to retrieve than instances of a more inclusive category. The representativeness and availability heuristics therefore can make a conjunction appear more probable than one of its constituents. This phenomenon is demonstrated in a variety of contexts including estimation of word frequency, personality judgment, medical prognosis, decision under risk, suspicion of criminal acts, and political forecasting. Systematic violations of the conjunction rule are observed in judgments of lay people and of experts in both between-subjects and within-subjects comparisons. Alternative interpretations of the conjunction fallacy are discussed and attempts to combat it are explored.

/pdf/extensional-versus-intuitive-reasoning-the-conjunction-2cmoy4v6op.pdf

Extensional versus intuitive reasoning: The conjunction fallacy in probability judgment.

Much research in the last two decades has demon- strated that human responses deviate from the performance deemed normative according to various models of decision mak- ing and rational judgment (e.g., the basic axioms of utility theory). This gap between the normative and the descriptive can be inter- preted as indicating systematic irrationalities in human cognition. However, four alternative interpretations preserve the assumption that human behavior and cognition is largely rational. These posit that the gap is due to (1) performance errors, (2) computational limitations, (3) the wrong norm being applied by the experi- menter, and (4) a different construal of the task by the subject. In the debates about the viability of these alternative explanations, attention has been focused too narrowly on the modal response. In a series of experiments involving most of the classic tasks in the heuristics and biases literature, we have examined the implica- tions of individual differences in performance for each of the four explanations of the normative/descriptive gap. Performance er- rors are a minor factor in the gap; computational limitations un- derlie non-normative responding on several tasks, particularly those that involve some type of cognitive decontextualization. Un- expected patterns of covariance can suggest when the wrong norm is being applied to a task or when an alternative construal of the task should be considered appropriate.

https://www.cambridge.org/core/services/aop-cambridge-core/content/view/S0140525X00003435

Individual differences in reasoning: Implications for the rationality debate?

A theory of norms and normality is presented and applied to some phenomena of emotional responses, social judgment, and conversations about causes. Norms are assumed to be constructed ad hoc by recruiting specific representations. Category norms are derived by recruiting exemplars. Specific objects or events generate their own norms by retrieval of similar experiences stored in memory or by construction of counterfactual alternatives. The normality of a stimulus is evaluated by comparing it to the norms that it evokes after the fact, rather than to precomputed expectations. Norm theory is applied in analyses of the enhanced emotional response to events that have abnormal causes, of the generation of predictions and inferences from observations of behavior, and of the role of norms in causal questions and answers. This article is concerned with category norms that represent knowledge of concepts and with stimulus norms that govern comparative judgments and designate experiences as surprising. In the tradition of adaptation level theory (Appley, 1971; Helson, 1964), the concept of norm is applied to events that range in complexity from single visual displays to social interactions. We first propose a model of an activation process that produces norms, then explore the role of norms in social cognition. The central idea of the present treatment is that norms are computed after the event rather than in advance. We sketch a supplement to the generally accepted idea that events in the stream of experience are interpreted and evaluated by consulting precomputed schemas and frames of reference. The view developed here is that each stimulus selectively recruits its own alternatives (Garner, 1962, 1970) and is interpreted in a rich context of remembered and constructed representations of what it could have been, might have been, or should have been. Thus, each event brings its own frame of reference into being. We also explore the idea that knowledge of categories (e.g., "encounters with Jim") can be derived on-line by selectively evoking stored representations of discrete episodes and exemplars. The present model assumes that a number of representations can be recruited in parallel, by either a stimulus event or an

https://www3.canyons.edu/faculty/rafterm/0%200LLI%20LOVEandLOSS/Day%206%20Files/1986%20-%20Norm%20Theory%20-%20Comparing%20Reality%20to%20Its%20Alternatives.pdf

Norm theory: Comparing reality to its alternatives

Knowledge and the Good in Plato's Republic

Symposium: Is There Knowledge by Acquaintance?

Acts of will and responsibility

IN 1776, the year of the American Declaration of Independence, and an annus mirabilis in English letters, Jeremy Bentham opened an epoch in political and legal theory; for not only did he announce in A Fragment on Government, published anonymously in that year, his first formulation of the principle of utility, according to which, "It is the greatest happiness of the greatest number that is the measure of right and wrong,"' but in the same year, 1776, he fired the first shot, in an Answer to the Declaration of the American Congress,2 of a long sceptical campaign conducted against the doctrine of natural and unalienable rights of man. In legal theory Bentham's sharp severance in the Fragment between law as it is and law as it ought to be and his insistence that the foundations of a legal system are properly described in the morally neutral terms of a general habit of obedience opened the long positivist tradition in English jurisprudence. It may be that the epoch which Bentham thus opened is now closing: certainly among American political and legal philosophers utilitarianism is on the defensive, if not on the run, in the face of theories of justice which3 in many ways resemble the doctrine of the unalienable rights of man; and there are now new forms of old theories holding that there are important conceptual connections between law and morality obscured by the positivist tradition.4

H. L. A. Hart

Papers

Knowledge and the Good in Plato's Republic

Symposium: Is There Knowledge by Acquaintance?

Acts of will and responsibility

Bentham and the United States of America

The Demystification of the Law