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Persistent link: https://www.econbiz.de/10003864214
Mutual fund companies selectively advertise their better performing funds. However, investors respond to advertised performance data as if those data were unselected (i.e., representative of the population). We identify the failure to discount selected or potentially selected data as selection...
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Newell, Mitchell, and Hayes (NMH) conduct three experiments designed to test whether exemplar cuing (EC) theory or a statistical format theory provides a more accurate account for how people make judgments about low-probability events. They report finding support for the statistical format...
Persistent link: https://www.econbiz.de/10014186303
Consumers often face decisions about whether to purchase products that are intended to protect them from possible harm. However, safety products rarely provide perfect protection and sometimes "betray" consumers by causing the very harm they are intended to prevent. Examples include vaccines...
Persistent link: https://www.econbiz.de/10014186322
The illusion of control refers to a phenomenon whereby people believe their chances of success at a task are greater than would be warranted by objective analysis. This article raises two questions. First, how robust is the illusion of control? Second, how might the illusion be ‘shattered?’...
Persistent link: https://www.econbiz.de/10014204235
I agree with Gibbs that the message of the base rate literature reads differently depending on which null hypothesis is used to frame the issue. But I argue that the normative null hypothesis, H0: 'People use base rates in a Bayesian manner,' is no longer appropriate. I also challenge Adler’s...
Persistent link: https://www.econbiz.de/10014204246
A 2009 conference at Arizona State University brought together leading scholars to discuss the future of forensic science in light of the blockbuster National Academy of Sciences report entitled ‘Strengthening Forensic Science in the United States: A Path Forward'. This paper introduces the...
Persistent link: https://www.econbiz.de/10013133760
Reaching an accurate outcome is a central goal of the American trial. But structural features of the legal system, in combination with the cognitive shortcomings of legal actors, hinder the search for truth. Regarding the legal system, various rules and policies restrict decision makers' access...
Persistent link: https://www.econbiz.de/10013086809