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When making decisions under risk, people often exhibit behaviors that classical economic theories cannot explain. Newer models that attempt to account for these irrational behaviors often lack neuroscience bases and require the introduction…

Theoretical Economics · Economics 2022-01-24 Ho Ka Chan , Taro Toyoizumi

Regression plays a key role in many research areas and its variable selection is a classic and major problem. This study emphasizes cost of predictors to be purchased for future use, when we select a subset of them. Its economic aspect is…

Methodology · Statistics 2021-03-19 Steven N. MacEachern , Koji Miyawaki

The human intrinsic desire to pursue knowledge, also known as curiosity, is considered essential in the process of skill acquisition. With the aid of artificial curiosity, we could equip current techniques for control, such as Reinforcement…

Machine Learning · Computer Science 2022-02-24 Pietro Mazzaglia , Ozan Catal , Tim Verbelen , Bart Dhoedt

Inferences about hypotheses are ubiquitous in the cognitive sciences. Bayes factors provide one general way to compare different hypotheses by their compatibility with the observed data. Those quantifications can then also be used to choose…

The use of ensembles of neural networks (NNs) for the quantification of predictive uncertainty is widespread. However, the current justification is intuitive rather than analytical. This work proposes one minor modification to the normal…

Machine Learning · Statistics 2018-07-03 Tim Pearce , Nicolas Anastassacos , Mohamed Zaki , Andy Neely

A modelling framework, based on the theory of signal processing, for characterising the dynamics of systems driven by the unravelling of information is outlined, and is applied to describe the process of decision making. The model input of…

Theoretical Economics · Economics 2022-04-14 Dorje C. Brody

The Bayesian approach to data analysis provides a powerful way to handle uncertainty in all observations, model parameters, and model structure using probability theory. Probabilistic programming languages make it easier to specify and fit…

When collaborating with an AI system, we need to assess when to trust its recommendations. If we mistakenly trust it in regions where it is likely to err, catastrophic failures may occur, hence the need for Bayesian approaches for…

Artificial Intelligence · Computer Science 2021-02-23 Federico Cerutti , Lance M. Kaplan , Angelika Kimmig , Murat Sensoy

Model uncertainty is pervasive in real world analysis situations and is an often-neglected issue in applied statistics. However, standard approaches to the research process do not address the inherent uncertainty in model building and,…

Methodology · Statistics 2024-03-01 Mariana Nold , Florian Meinfelder , David Kaplan

This study examines the application of Bayesian approach in the context of clinical trials, emphasizing their increasing importance in contemporary biomedical research. While conventional frequentist approach provides a foundational basis…

Methodology · Statistics 2026-01-16 Paramahansa Pramanik , Arnab Kumar Maity , Anjan Mandal , Haley Kate Robinson

Are certain cognitive biases mathematically inevitable consequences of sequential information processing? We prove that primacy effects, anchoring, and order-dependence are architecturally necessary in autoregressive language models due to…

Artificial Intelligence · Computer Science 2026-05-12 Jikun Wu , Dongxin Guo , Siu-Ming Yiu

We propose a collective opinion formation model with a so-called confirmation bias. The confirmation bias is a psychological effect with which, in the context of opinion formation, an individual in favor of an opinion is prone to…

Physics and Society · Physics 2013-06-24 Ryosuke Nishi , Naoki Masuda

Reverse causality is a common causal misperception that distorts the evaluation of private actions and public policies. This paper explores the implications of this error when a decision maker acts on it and therefore affects the very…

Theoretical Economics · Economics 2021-10-26 Ran Spiegler

Living in the 'Information Age' means that not only access to information has become easier but also that the distribution of information is more dynamic than ever. Through a large-scale online field experiment, we provide new empirical…

Computers and Society · Computer Science 2023-01-05 Taha Yasseri , Jannie Reher

Adaptive behavior emerges through a dynamic interaction between cognitive agents and changing environmental demands. The investigation of information processing underlying adaptive behavior relies on controlled experimental settings in…

Neurons and Cognition · Quantitative Biology 2020-11-30 Marco D'Alessandro , Stefan T. Radev , Andreas Voss , Luigi Lombardi

It is often claimed that Bayesian methods, in particular Bayes factor methods for hypothesis testing, can deal with optional stopping. We first give an overview, using elementary probability theory, of three different mathematical meanings…

Statistics Theory · Mathematics 2021-03-24 Allard Hendriksen , Rianne de Heide , Peter Grünwald

The Availability bias, manifested in the over-representation of extreme eventualities in decision-making, is a well-known cognitive bias, and is generally taken as evidence of human irrationality. In this work, we present the first…

Neurons and Cognition · Quantitative Biology 2018-01-31 Ardavan S. Nobandegani , Kevin da Silva Castanheira , A. Ross Otto , Thomas R. Shultz

Controlled experiments (A/B tests or randomized field experiments) are the de facto standard to make data-driven decisions when implementing changes and observing customer responses. The methodology to analyze such experiments should be…

Applications · Statistics 2020-03-06 Shafi Kamalbasha , Manuel J. A. Eugster

Bayesian inference has theoretical attractions as a principled framework for reasoning about beliefs. However, the motivations of Bayesian inference which claim it to be the only 'rational' kind of reasoning do not apply in practice. They…

Machine Learning · Statistics 2022-11-14 Sebastian Farquhar

The human brain copes with sensory uncertainty in accordance with Bayes' rule. However, it is unknown how the brain makes predictions in the presence of parameter uncertainty. Here, we tested whether and how humans take parameter…

Neurons and Cognition · Quantitative Biology 2020-07-01 Jannes Jegminat , Maya Jastrzebowska , Matt Pachai , Michael Herzog , Jean-Pascal Pfister