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Decision Making in Robots and Autonomous Agents Behavioural Aspects of Human Choice: Heuris;cs & Biases Subramanian Ramamoorthy School of Informa;cs 22 March, 2019

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Page 1: Decision Making - The University of Edinburgh · 2019. 3. 21. · 22/03/2019 3 Heuris’cs and Biases • Tversky and Kahneman dramacally extended Bernoulli’s account, and provided

DecisionMakingin Robots and Autonomous Agents

BehaviouralAspectsofHumanChoice:

Heuris;cs&Biases

SubramanianRamamoorthySchoolofInforma;cs

22March,2019

Page 2: Decision Making - The University of Edinburgh · 2019. 3. 21. · 22/03/2019 3 Heuris’cs and Biases • Tversky and Kahneman dramacally extended Bernoulli’s account, and provided

TheRa'onalAnimalTheGreeks(Aristotle)thoughtthathumansarera'onalanimals.

–  Manyancientphilosophersagreed–  Clearly,evenAristotlewasawarethatpeople’s

judgments,decisions&behaviorarenotalwaysra'onal.–  Amoreplausiblerevisedclaim:allnormalhumanshave

thecompetencetobera'onal.ArgumentthusfarinDMRhasbeeninthisspirit:

–  “correct”principlesofreasoning&decisionmakingareinourminds,evenifwedon’talwaysusethem

–  “Excep'ons”werethingslikeBernoulli’sobserva'onthatwebecomeprogressivelymoreindifferenttolargergains

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Heuris'csandBiases

•  TverskyandKahnemandrama'callyextendedBernoulli’saccount,andprovidedextensivepsychologicalevidencefortheirmodel.

•  Whattheyshowedisthathumansdepartinmul'plewaysfromaclassicalpictureofra'onalbehavior.

•  ManyhaveinterpretedtheKahneman&TverskyprogramasshowingthatAristotlewaswrong.–  mostpeopledonothavethecorrectprinciplesforreasoning&decisionmaking

–  wegetbywithmuchsimplerprincipleswhichonlysome/mesgettherightanswer

Amos Tversky1937 - 1996

Daniel Kahneman

Page 4: Decision Making - The University of Edinburgh · 2019. 3. 21. · 22/03/2019 3 Heuris’cs and Biases • Tversky and Kahneman dramacally extended Bernoulli’s account, and provided

AnIntui'onfromGigerenzer

Which US city has more inhabitants, San Diego or San Antonio?•  62%ofAmericansgotthiscorrect•  100%ofGermansgotthiscorrect

TheRecogni'onHeuris'c:Ifoneoftwoobjectsisrecognizedandtheotherisnot,theninferthattherecognizedobjecthasthehighervalue.

EcologicalRa'onality:Heuris'cworkswhenignoranceissystema'c(non–random),i.e.,whenlackofrecogni'oncorrelateswiththecriterion.

22/03/2019 4Goldstein & Gigerenzer, 2002, Psychological Review

Page 5: Decision Making - The University of Edinburgh · 2019. 3. 21. · 22/03/2019 3 Heuris’cs and Biases • Tversky and Kahneman dramacally extended Bernoulli’s account, and provided

ExperimentalStudiesofHumanReasoning

•  TheConjunc'onFallacy•  BaseRateNeglect•  Overconfidence•  Framing

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Page 6: Decision Making - The University of Edinburgh · 2019. 3. 21. · 22/03/2019 3 Heuris’cs and Biases • Tversky and Kahneman dramacally extended Bernoulli’s account, and provided

Linda is 31 years old, single, outspoken, and very bright. She majored in philosophy. As a student, she was deeply concerned with issues of discrimination and social justice, and also participated in anti-nuclear demonstrations. Please rank the following statements by their probability, using 1 for the most probable and 8 for the least probable.

(a) Linda is a teacher in elementary school. (b) Linda works in a bookstore and takes Yoga classes. (c) Linda is active in the feminist movement. (d) Linda is a psychiatric social worker. (e) Linda is a member of the League of Women Voters. (f) Linda is a bank teller. (g) Linda is an insurance sales person. (h) Linda is a bank teller & is active in the feminist movement.

Naïve subjects: (h) > (f) 89%

Sophisticated subjects: 85% 22/03/2019 6

Page 7: Decision Making - The University of Edinburgh · 2019. 3. 21. · 22/03/2019 3 Heuris’cs and Biases • Tversky and Kahneman dramacally extended Bernoulli’s account, and provided

Johnis19,wearsglasses,isalidleshyunlessyoutalktohimaboutStarTrekorLordoftheRings,andstaysuplatemostnightsplayingvideogames.Whichismorelikely?1.  JohnisaCSmajorwholovescontemporarysculpture

andgolf,or2.  Johnlovescontemporarysculptureandgolf?

Onproblemslikethis,peopletendtopick(1)above(2),incontradic'ontoprobabilitytheory.

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ExperimentalStudiesofHumanReasoning

•  TheConjunc'onFallacy•  BaseRateNeglect•  Overconfidence•  Framing

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Page 9: Decision Making - The University of Edinburgh · 2019. 3. 21. · 22/03/2019 3 Heuris’cs and Biases • Tversky and Kahneman dramacally extended Bernoulli’s account, and provided

A panel of psychologists have interviewed and administered personality tests to 30 engineers and 70 lawyers [70 engineers and 30 lawyers], all successful in their respective fields. On the basis of this information, thumbnail descriptions of the 30 engineers and 70 lawyers [70 engineers and 30 lawyers], have been written. You will find on your forms five descriptions, chosen at random from the 100 available descriptions. For each description, please indicate your probability that the person described is an engineer, on a scale from 0 to 100.

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Page 10: Decision Making - The University of Edinburgh · 2019. 3. 21. · 22/03/2019 3 Heuris’cs and Biases • Tversky and Kahneman dramacally extended Bernoulli’s account, and provided

Jack is a 45-year-old man. He is married and has four children. He is generally conservative, careful and ambitious. He shows no interest in political and social issues and spends most of his free time on his many hobbies which include home carpentry, sailing, and mathematical puzzles.

Dick is a 30-year-old man. He is married with no children. A man of high ability and high motivation, he promises to be quite successful in his field. He is well liked by his colleagues.

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Page 11: Decision Making - The University of Edinburgh · 2019. 3. 21. · 22/03/2019 3 Heuris’cs and Biases • Tversky and Kahneman dramacally extended Bernoulli’s account, and provided

BaseRateandRepresenta'veness

Withnopersonalitysketch,simplyaskedfortheprobabilitythatanunknownindividualwasanengineer–  subjectscorrectlygavetheresponses0.7and0.3

Whenpresentedwithatotallyuninforma'vedescrip'on

–  thesubjectsgavetheprobabilitytobe0.5

Kahneman&Tverskyconcludedthatwhennospecificevidenceisgiven,priorprobabili'esareusedproperly;whenworthlessevidenceisgiven,priorprobabili'esareignored.

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Page 12: Decision Making - The University of Edinburgh · 2019. 3. 21. · 22/03/2019 3 Heuris’cs and Biases • Tversky and Kahneman dramacally extended Bernoulli’s account, and provided

If a test to detect a disease whose prevalence is 1/1000 has a false positive rate of 5%, what is the chance that a person found to have a positive result actually has the disease, assuming that you know nothing about the person’s symptoms or signs?

____%

Harvard Medical School: “2%” = 18%; “95%” = 45%

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Whyisthecorrectanswer2%?

•  Thinkofapopula'onof10,000people.•  Wewouldexpectjust10peopleinthispopula'ontohavethe

disease(1/1000x10,000=10)•  Ifyoutesteverybodyinthepopula'onthenfalseposi'verate

meansthat,inaddi'ontothe10peoplewhodohavethedisease,another500(5%)willbewronglydiagnosedashavingit.

•  Inotherwordsonlyabout2%ofthepeoplediagnosedposi've(10/510)actuallyhavethedisease.

•  Whenpeoplegiveahighanswerlike95%theyareignoringtheverylowprobability(i.e.rarity)ofhavingthedisease.Incomparison,probabilityofafalseposi'vetestisrela'velyhigh.

Page 14: Decision Making - The University of Edinburgh · 2019. 3. 21. · 22/03/2019 3 Heuris’cs and Biases • Tversky and Kahneman dramacally extended Bernoulli’s account, and provided

ExperimentalStudiesofHumanReasoning

•  TheConjunc'onFallacy•  BaseRateNeglect•  Overconfidence•  Framing

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Page 15: Decision Making - The University of Edinburgh · 2019. 3. 21. · 22/03/2019 3 Heuris’cs and Biases • Tversky and Kahneman dramacally extended Bernoulli’s account, and provided

In each of the following pairs, which city has more inhabitants?

§  (a) Las Vegas (b) Miami How confident are you that your answer is correct? 50% 60% 70% 80% 90% 100%

§  (a) Sydney (b) Melbourne How confident are you that your answer is correct? 50% 60% 70% 80% 90% 100%

§  (a) Hyderabad (b) Islamabad How confident are you that your answer is correct? 50% 60% 70% 80% 90% 100%

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Page 16: Decision Making - The University of Edinburgh · 2019. 3. 21. · 22/03/2019 3 Heuris’cs and Biases • Tversky and Kahneman dramacally extended Bernoulli’s account, and provided

Overconfidenceeffect

•  Person'ssubjec'veconfidenceinhisorherjudgementsisreliablygreaterthantheobjec'veaccuracyofthosejudgements–  especiallywhenconfidenceishigh

•  Manifestedindifferentways:–  overes/ma/onofone'sactualperformance–  overplacementofone'sperformancerela'vetoothers–  overprecisioninexpressingunwarrantedcertaintyintheaccuracyofone'sbeliefs.

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Page 17: Decision Making - The University of Edinburgh · 2019. 3. 21. · 22/03/2019 3 Heuris’cs and Biases • Tversky and Kahneman dramacally extended Bernoulli’s account, and provided

ExperimentalStudiesofHumanReasoning

•  TheConjunc'onFallacy•  BaseRateNeglect•  Overconfidence•  Framing

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Page 18: Decision Making - The University of Edinburgh · 2019. 3. 21. · 22/03/2019 3 Heuris’cs and Biases • Tversky and Kahneman dramacally extended Bernoulli’s account, and provided

Imagine the U.S. is preparing for the outbreak of anunusual Asian disease which is expected to kill 600people. Two alterna've programs to combat thedisease have been proposed. Assume that the exactscien'fices'matesoftheconsequencesoftheprogramareasfollows:

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Page 19: Decision Making - The University of Edinburgh · 2019. 3. 21. · 22/03/2019 3 Heuris’cs and Biases • Tversky and Kahneman dramacally extended Bernoulli’s account, and provided

–  IfprogramAisadopted,200peoplewillbesaved.

–  IfprogramBisadopted,thereisa1/3probabilitythat600peoplewillbesavedanda2/3probabilitythatnopeoplewillbesaved.

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Page 20: Decision Making - The University of Edinburgh · 2019. 3. 21. · 22/03/2019 3 Heuris’cs and Biases • Tversky and Kahneman dramacally extended Bernoulli’s account, and provided

–  IfprogramAisadopted,200peoplewillbesaved.

–  IfprogramBisadopted,thereisa1/3probabilitythat600peoplewillbesavedanda2/3probabilitythatnopeoplewillbesaved.

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Page 21: Decision Making - The University of Edinburgh · 2019. 3. 21. · 22/03/2019 3 Heuris’cs and Biases • Tversky and Kahneman dramacally extended Bernoulli’s account, and provided

–  IfprogramCisadopted,400peoplewilldie.

–  IfprogramDisadopted,thereisa1/3probabilitythatnobodywilldieanda2/3probabilitythat600peoplewilldie.

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Page 22: Decision Making - The University of Edinburgh · 2019. 3. 21. · 22/03/2019 3 Heuris’cs and Biases • Tversky and Kahneman dramacally extended Bernoulli’s account, and provided

–  IfprogramCisadopted,400peoplewilldie.

–  IfprogramDisadopted,thereisa1/3probabilitythatnobodywilldieanda2/3probabilitythat600peoplewilldie.

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Page 23: Decision Making - The University of Edinburgh · 2019. 3. 21. · 22/03/2019 3 Heuris’cs and Biases • Tversky and Kahneman dramacally extended Bernoulli’s account, and provided

–  IfprogramAisadopted,200peoplewillbesaved.

–  IfprogramBisadopted,thereisa1/3probabilitythat600peoplewillbesavedanda2/3probabilitythatnopeoplewillbesaved.

–  IfprogramCisadopted,400peoplewilldie.

–  IfprogramDisadopted,thereisa1/3probabilitythatnobodywilldieanda2/3probabilitythat600peoplewilldie.

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Page 24: Decision Making - The University of Edinburgh · 2019. 3. 21. · 22/03/2019 3 Heuris’cs and Biases • Tversky and Kahneman dramacally extended Bernoulli’s account, and provided

ProgramAversusB

•  TverskyandKahneman(1981)foundthatthemajoritychoice(72%)forananalogueofproblem1usingananonymous“Asiandisease”(notSARS)wasanswerA.

•  Theprospectofsaving200liveswithcertaintywasmorepromisingthantheprobabilityofaone-in-threechanceofsaving600lives.

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Page 25: Decision Making - The University of Edinburgh · 2019. 3. 21. · 22/03/2019 3 Heuris’cs and Biases • Tversky and Kahneman dramacally extended Bernoulli’s account, and provided

AandBhavetheSameU'lity

•  Thestandardwayofcalcula'ngexpectedu'lity:•  ΣiP(oi)xU(oi)•  whereeachoiisapossibleoutcome,P(oi)isits

probabilityandU(oi)isitsu'lityorvalue.

•  Onthisbasis,op'onB(ariskyprospect)wouldbeofequalexpectedvaluetothefirstprospectA.

•  Sointhiscasesubjectsarenotsimplyusingexpectedu'lity:theyareriskaverse.

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Page 26: Decision Making - The University of Edinburgh · 2019. 3. 21. · 22/03/2019 3 Heuris’cs and Biases • Tversky and Kahneman dramacally extended Bernoulli’s account, and provided

ProgramCversusD

•  Themajorityofrespondentsinthesecondproblem(78%)chosetheriskierop'on.

•  Thecertaindeathof400peopleisapparentlylessacceptablethanthetwo-in-threechancethat600peoplewilldie.

•  Onceagain,thereisnodifferencebetweentheop'ons(CandD)instandardexpectedu'lity.

•  Wesayinthiscasethatpeopleareriskseeking.

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Page 27: Decision Making - The University of Edinburgh · 2019. 3. 21. · 22/03/2019 3 Heuris’cs and Biases • Tversky and Kahneman dramacally extended Bernoulli’s account, and provided

Framing

•  TverskyandKahneman’sinten'onwasthatProblem1andProblem2areunderlyinglyiden'cal,butpresentedindifferentways.

•  Totheextentthattheyareright,wesaythattheyaredifferentframingsofthesameproblem:thedifferentresponsesforthetwoproblemsarewhatwecallframingeffects.

•  Yetanotherwayinwhichpeople’sdecisionsdifferfromwhatwouldbepredictedonthestandardviewofexpectedu'lity.

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ProspectTheory:S-curveofValue

Actual gain

Perceivedgain

Actual loss

PerceivedLoss

•  Small gain good,•  Big gain not much

better,•  Small loss terrible,•  Big loss not much

worse.

Thus we are generally:•  Loss averse,•  Risk averse for gains,

but•  Risk seeking for losses.

Reference point

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Es'ma'onofRisk

Estimates of Probabilities of Death From Various Causes:

Cause Stanford graduate estimates Statistical estimatesHeart Disease 0.22 0.34Cancer 0.18 0.23Other Natural Causes 0.33 0.35All Natural Causes 0.73 0.92

Accident 0.32 0.05Homicide 0.10 0.01Other Unnatural 0.11 0.02All Unnatural 0.53 0.08

(BasedonastudybyAmosTversky,ThayerWatkin’sreport)

Page 30: Decision Making - The University of Edinburgh · 2019. 3. 21. · 22/03/2019 3 Heuris’cs and Biases • Tversky and Kahneman dramacally extended Bernoulli’s account, and provided

BigandSmallProbabili'es

•  Smallprobabilityeventsareoverrated.

•  Moregenerally,behaviordepartsfromclassicalra'onalitysubstan'allyasregardsverysmallandverylargeprobabili'es.

•  Evenwhentoldthefrequencyofevents,subjectstendtoviewthedifferencebetween0and0.001(orthatbetween0.999and1)asmoresignificantthanthatbetween.5and.5001.

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Page 31: Decision Making - The University of Edinburgh · 2019. 3. 21. · 22/03/2019 3 Heuris’cs and Biases • Tversky and Kahneman dramacally extended Bernoulli’s account, and provided

The“BleakImplica'ons”Hypothesis

•  These results have“bleak implica'ons” for the ra'onalityofordinarypeople(Nisbedetal.)

•  “Itappearsthatpeoplelackthecorrectprogramsformanyimportant judgmental tasks…. We have not had theopportunity to evolve an intellect capable of dealingconceptually with uncertainty.” (Slovic, Fischhoff andLichtenstein,1976)

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The“BleakImplica'ons”Hypothesis

“I am par'cularly fond of [the Linda] example, because Iknow that the [conjunc'on] is least probable, yet a lidlehomunculus ismy head con'nues to jump up and down,shou'ngatme–“butshecan’t justbeabankteller;readthe descrip'on.” … Why do we consistently make thissimple logical error? Tversky and Kahneman argue,correctlyIthink,thatourmindsarenotbuilt(forwhateverreason) towork by the rules of probability.” (Stephen J.Gould,1992,p.469)

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Page 33: Decision Making - The University of Edinburgh · 2019. 3. 21. · 22/03/2019 3 Heuris’cs and Biases • Tversky and Kahneman dramacally extended Bernoulli’s account, and provided

ChallengefromEvolu'onaryPsychology

•  The“frequen'st”hypothesis–  Usefulinforma'onaboutprobabili'eswasavailableto

ourancestorsintheformoffrequencies•  e.g.,3ofthelast12huntsnearriversweresuccessful

–  Informa'onabouttheprobabili'esofsingleeventswasnotavailable

–  Soperhapsweevolvedamentalcapacitythatisgoodatdealingwithprobabilis'cinforma'on,butonlywhenthatinforma'onispresentedinafrequencyformat.

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MakingtheConjunc'onFallacy“Disappear”…

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Page 35: Decision Making - The University of Edinburgh · 2019. 3. 21. · 22/03/2019 3 Heuris’cs and Biases • Tversky and Kahneman dramacally extended Bernoulli’s account, and provided

Linda is 31 years old, single, outspoken, and very bright. She majored in philosophy. As a student, she was deeply concerned with issues of discrimination and social justice, and also participated in anti-nuclear demonstrations. Please rank the following statements by their probability, using 1 for the most probable and 8 for the least probable.

(a) Linda is a teacher in elementary school. (b) Linda works in a bookstore and takes Yoga classes. (c) Linda is active in the feminist movement. (d) Linda is a psychiatric social worker. (e) Linda is a member of the League of Women Voters. (f) Linda is a bank teller. (g) Linda is an insurance sales person. (h) Linda is a bank teller and is active in the feminist movement.

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Page 36: Decision Making - The University of Edinburgh · 2019. 3. 21. · 22/03/2019 3 Heuris’cs and Biases • Tversky and Kahneman dramacally extended Bernoulli’s account, and provided

Linda is 31 years old, single, outspoken, and very bright. She majored in philosophy. As a student, she was deeply concerned with issues of discrimination and social justice, and also participated in anti-nuclear demonstrations.

There are 100 people who fit the description above. How many of them are:

(f) bank tellers?

(h) bank tellers and active in the feminist movement?

...

(h) > (f) = 13%

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Page 37: Decision Making - The University of Edinburgh · 2019. 3. 21. · 22/03/2019 3 Heuris’cs and Biases • Tversky and Kahneman dramacally extended Bernoulli’s account, and provided

Level-kReasoning

Thecen'pedegame:

•  Intheonlyequilibriuminvolvingra'onalplayers,player1choosesdowninthefirst'memove

•  Whatexactlydorealpeopledo?–  Humansubjectsdon’tchoosethedownop'onrightaway–  Howdoweunderstandtheirbehaviour?

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Page 38: Decision Making - The University of Edinburgh · 2019. 3. 21. · 22/03/2019 3 Heuris’cs and Biases • Tversky and Kahneman dramacally extended Bernoulli’s account, and provided

HideandSeekGames

•  Youropponenthashiddenaprizeinoneoffourboxesarrangedinarow.

•  Theboxesaremarkedasshownbelow:A,B,A,A•  Yourgoalis,ofcourse,tofindtheprize.•  Hisgoalisthatyouwillnotfindit.•  Youareallowedtoopenonlyonebox.•  Whichboxareyougoingtoopen?

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Page 39: Decision Making - The University of Edinburgh · 2019. 3. 21. · 22/03/2019 3 Heuris’cs and Biases • Tversky and Kahneman dramacally extended Bernoulli’s account, and provided

FolkWisdom

•  “…inLakeWobegon,thecorrectanswerisusually‘c’.” –GarrisonKeillor(1997)onmul'ple-choicetests

•  CommentonpoisoningofUkrainian’spresiden'alcandidate:“Anygovernmentwan'ngtokillanopponent…wouldnottryitatamee'ngwithgovernmentofficials.” –ViktorYushchenko(2004)

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Page 40: Decision Making - The University of Edinburgh · 2019. 3. 21. · 22/03/2019 3 Heuris’cs and Biases • Tversky and Kahneman dramacally extended Bernoulli’s account, and provided

UniqueEquilibriumofHideandSeekGame

•  Ifbothplayersrandomizeuniformly:

Expectedpayoffs:Hider3/4,Seeker1/4

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Page 41: Decision Making - The University of Edinburgh · 2019. 3. 21. · 22/03/2019 3 Heuris’cs and Biases • Tversky and Kahneman dramacally extended Bernoulli’s account, and provided

BehaviouralExperimentinHideandSeek

•  CentralA(or3)ismostprevalentforbothHidersandSeekers•  CentralAisevenmoreprevalentforSeekers

–  Asaresult,Seekersdobederthaninequilibrium•  Shouldn’tHidersrealizethatSeekerswillbejustastemptedto

lookthere?•  “Thefindingthatbothchoosersandguessersselectedtheleast

salientalterna'vesuggestslidleornostrategicthinking.”

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Page 42: Decision Making - The University of Edinburgh · 2019. 3. 21. · 22/03/2019 3 Heuris’cs and Biases • Tversky and Kahneman dramacally extended Bernoulli’s account, and provided

p-BeautyContestGames(Keynes,1936)

“…professionalinvestmentmaybelikenedtothosenewspapercompe''onsinwhichthecompe'torshavetopickoutthesixprevestfacesfromahundredphotographs,

theprizebeingawardedtothecompe'torwhosechoicemostnearlycorrespondstotheaveragepreferencesofthecompe'torsasawhole….

Itisnotacaseofchoosingthose[faces]that,tothebestofone’sjudgment,arereallytheprevest,noreventhosethataverageopiniongenuinelythinkstheprevest.

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p-BeautyContestGames

•  Wehavereachedthethirddegreewherewedevoteourintelligencesto…an'cipa'ngwhataverageopinionexpectstheaverageopiniontobe.

•  Andtherearesome,Ibelieve,whoprac'cethefourth,fiIhandhigherdegrees.”

–Keynes,GeneralTheory,1936,pp.155-56

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Page 44: Decision Making - The University of Edinburgh · 2019. 3. 21. · 22/03/2019 3 Heuris’cs and Biases • Tversky and Kahneman dramacally extended Bernoulli’s account, and provided

Level-kReasoning

Onecouldplayatvaryinglevelsofdepthofreasoning:•  Level-0:Randomplay•  Level-1:BRtoRandomplay•  Level-2:BRtoLevel-1•  Nash:PlayNashEquilibrium(level-∞?)•  Worldly:BRtodistribu'onofLevel-0,Level-1andNashtypes

StahlandWilson(GEB1995)

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Level-kforHideandSeek

•  Level-k:EachroleisfilledbyLktypes:L0,L1,L2,L3,orL4(probabili'estobees'mated…) –Note:InHideandSeekthetypescycleaxerL4…

•  HightypesanchorbeliefsinanaïveL0typeandadjustswith

iteratedbestresponses: –L1bestrespondstoL0(withuniformerrors) –L2bestrespondstoL1(withuniformerrors) –LkbestrespondstoLk-1(withuniformerrors)

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Page 46: Decision Making - The University of Edinburgh · 2019. 3. 21. · 22/03/2019 3 Heuris’cs and Biases • Tversky and Kahneman dramacally extended Bernoulli’s account, and provided

Level-kforHideandSeek

•  L0HidersandSeekersaresymmetric–Favorsalientloca'onsequally1.Favor“B”:choosewithprobabilityq>1/42.Favor“endA”:choosewithprob.p/2>1/4 –Choiceprobabili'es:(p/2,q,1-p-q,p/2)

•  Note:Specifica'onofAnchoringTypeL0isthekeytomodel’sexplanatorypower –Can’tuseuniformL0(coincidewithequilibrium)…

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Page 47: Decision Making - The University of Edinburgh · 2019. 3. 21. · 22/03/2019 3 Heuris’cs and Biases • Tversky and Kahneman dramacally extended Bernoulli’s account, and provided

ModernPerspec've:DiversityinModesofThinking

•  Automa'cSystem(Type1)–  Fast,unconscious–  Parallel,associa've–  Lowenergy–  “Doer”

•  Reflec'veSystem(Type2)–  Slow,conscious–  Serial–  Expensive–  “Planner”

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TrainingtoGoBetweenModesExample:BoardMemoryinChess

hdps://www.youtube.com/watch?v=rWuJqCw|jc

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U'lisingTypeIThinking

•  frombehavioralscience•  arguesthatposi've

reinforcementandindirectsugges'onstotrytoachievenon-forcedcompliancecaninfluencemo'ves,incen'vesanddecisionmaking

•  atleastaseffec'vely–ifnotmoreeffec'vely-thandirectinstruc'on,legisla'on,orenforcement

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Applica'onExample:PersuasiveTechnology(Beeminder)

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Applica'onExample:ChangingDrivingBehaviour-LoderyIncen've

•  Enterpeopleinaloderyiftheycometocampusoff-peak•  Observethatthissmallprobabilityofearningsactuallycauses

non-essen'altravellerstoaltertheirbehaviour

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Summary

•  Muchofthecourseprogressedundertheassump'onofafairlystrictformofra'onality–  Nobodyactuallybelievesthatthisiswhatpeoplealwaysdo–  Instead,animplicitclaimisthatpeoplehavethecapacityforthiskind

ofreasoning

•  Inthislecture,welookedathowpeoplesystema'callydeviatefromsuchano'onofra'onality

•  Thishasmajorimplica'onsforcomputa'onalagents–  Intheend,youwantthemtoworkwithrealpeople–  Modelling“realpeople”ischallenging,butul'matelytheraisond’etre

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Acknowledgements

Firstsec'ononheuris'csandbiasesisadaptedfromJurafskyetal.’sSymbolicSystemscontentatStanford

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