A sampling model of social judgment.
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How Field Experiments in Economics Can Complement Psychological Research on Judgment Biases
This review summarizes results of field experiments examining individual behaviors across several market settings—from open-air markets to rideshare markets to tax-compliance markets—where people sort themselves into market roles wherein they make consequential decisions. Using three distinct examples from my own research on the endowment effect, left-digit bias, and omission bias, I showcase how field experiments can help researchers understand mediators, heterogeneity, and causal moderation involved in judgment biases in the field. In this manner, the review highlights that economic field experiments can serve an invaluable intellectual role alongside traditional laboratory research.
Social Sampling Explains Apparent Biases in Judgments of Social Environments
How people assess their social environments plays a central role in how they evaluate their life circumstances. Using a large probabilistic national sample, we investigated how accurately people estimate characteristics of the general population. For most characteristics, people seemed to underestimate the quality of others’ lives and showed apparent self-enhancement, but for some characteristics, they seemed to overestimate the quality of others’ lives and showed apparent self-depreciation. In addition, people who were worse off appeared to enhance their social position more than those who were better off. We demonstrated that these effects can be explained by a simple social-sampling model. According to the model, people infer how others are doing by sampling from their own immediate social environments. Interplay of these sampling processes and the specific structure of social environments leads to the apparent biases. The model predicts the empirical results better than alternative accounts and highlights the importance of considering environmental structure when studying human cognition.
Mindful Judgment and Decision Making
A full range of psychological processes has been put into play to explain judgment and choice phenomena. Complementing work on attention, information integration, and learning, decision research over the past 10 years has also examined the effects of goals, mental representation, and memory processes. In addition to deliberative processes, automatic processes have gotten closer attention, and the emotions revolution has put affective processes on a footing equal to cognitive ones. Psychological process models provide natural predictions about individual differences and lifespan changes and integrate across judgment and decision making (JDM) phenomena. “Mindful” JDM research leverages our knowledge about psychological processes into causal explanations for important judgment and choice regularities, emphasizing the adaptive use of an abundance of processing alternatives. Such explanations supplement and support existing mathematical descriptions of phenomena such as loss aversion or hyperbolic discounting. Unlike such descriptions, they also provide entry points for interventions designed to help people overcome judgments or choices considered undesirable.
Thinking—Fast, Slow, and Artificial: How AI is Reshaping Human Reasoning and the Rise of Cognitive Surrender
People increasingly consult generative artificial intelligence (AI) while reasoning. As AI becomes embedded in daily thought, what becomes of human judgment? We introduce Tri-System Theory, extending dual-process accounts of reasoning by positing System 3: artificial cognition that operates outside the brain. System 3 can supplement or supplant internal processes, introducing novel cognitive pathways. A key prediction of the theory is “cognitive surrender”—adopting AI outputs with minimal scrutiny, overriding intuition (System 1) and deliberation (System 2). Across three preregistered experiments using an adapted Cognitive Reflection Test (N = 1,372; 9,593 trials), we randomized AI accuracy via hidden seed prompts. Participants chose to consult an AI assistant on a majority of trials (>50%). Relative to baseline (no System 3 access), accuracy significantly rose when AI was accurate and fell when it erred (+25/-15 percentage points; Study 1), the behavioral signature of cognitive surrender (AI-Accurate vs. AI-Faulty contrast; Cohen’s h = 0.81). Engaging System 3 also increased confidence, even following errors. Time pressure (Study 2) and per-item incentives and feedback (Study 3) shifted baseline performance but did not eliminate this pattern: when accurate, AI buffered time-pressure costs and amplified incentive gains; when faulty, it consistently reduced accuracy regardless of situational moderators. Across studies, participants with higher trust in AI and lower need for cognition and fluid intelligence showed greater surrender to System 3. Tri-System Theory thus characterizes a triadic cognitive ecology, revealing how System 3 reframes human reasoning and may reshape autonomy and accountability in the age of AI.
Thinking—Fast, Slow, and Artificial: How AI is Reshaping Human Reasoning and the Rise of Cognitive Surrender
People increasingly consult generative artificial intelligence (AI) while reasoning. As AI becomes embedded in daily thought, what becomes of human judgment? We introduce Tri-System Theory, extending dual-process accounts of reasoning by positing System 3: artificial cognition that operates outside the brain. System 3 can supplement or supplant internal processes, introducing novel cognitive pathways. A key prediction of the theory is "cognitive surrender"-adopting AI outputs with minimal scrutiny, overriding intuition (System 1) and deliberation (System 2). Across three preregistered experiments using an adapted Cognitive Reflection Test (N = 1,372; 9,593 trials), we randomized AI accuracy via hidden seed prompts. Participants chose to consult an AI assistant on a majority of trials (>50%). Relative to baseline (no System 3 access), accuracy significantly rose when AI was accurate and fell when it erred (+25/-15 percentage points; Study 1), the behavioral signature of cognitive surrender (AI-Accurate vs. AI-Faulty contrast; Cohen's h = 0.81). Engaging System 3 also increased confidence, even following errors. Time pressure (Study 2) and per-item incentives and feedback (Study 3) shifted baseline performance but did not eliminate this pattern: when accurate, AI buffered time-pressure costs and amplified incentive gains; when faulty, it consistently reduced accuracy regardless of situational moderators. Across studies, participants with higher trust in AI and lower need for cognition and fluid intelligence showed greater surrender to System 3. Tri-System Theory thus characterizes a triadic cognitive ecology, revealing how System 3 reframes human reasoning and may reshape autonomy and accountability in the age of AI.
A Theory of Response Sampling in LLMs: Part Descriptive and Part Prescriptive
Large Language Models (LLMs) are increasingly utilized in autonomous decision-making, where they sample options from vast action spaces. However, the heuristics that guide this sampling process remain under-explored. We study this sampling behavior and show that this underlying heuristics resembles that of human decision-making: comprising a descriptive component (reflecting statistical norm) and a prescriptive component (implicit ideal encoded in the LLM) of a concept. We show that this deviation of a sample from the statistical norm towards a prescriptive component consistently appears in concepts across diverse real-world domains like public health, and economic trends. To further illustrate the theory, we demonstrate that concept prototypes in LLMs are affected by prescriptive norms, similar to the concept of normality in humans. Through case studies and comparison with human studies, we illustrate that in real-world applications, the shift of samples toward an ideal value in LLMs' outputs can result in significantly biased decision-making, raising ethical concerns.
AI Sycophancy and Decisions
We examine whether sycophantic AI advice distorts decisions. Our experiment involves 1,500 participants in 30 decision environments spanning core domains in eco
Thinking—Fast, Slow, and Artificial: How AI is Reshaping Human Reasoning and the Rise of Cognitive Surrender
People increasingly consult generative artificial intelligence (AI) while reasoning. As AI becomes embedded in daily thought, what becomes of human judgment? We
Exploring Psychology in the Field: Steps and Examples From the Used‐Car Market
Abstract The growing availability of large datasets in a variety of domains presents an opportunity for researchers to use field data to better understand psychological concepts. I discuss, from an empirical economics point of view, steps for how to study cognition in large datasets. I use two recent papers that explore psychology in the used‐car market as motivating examples. These examples help illustrate the potential importance of big data as a way to explore human psychology and cognition. , The growing availability of large datasets in a variety of domains presents an opportunity for researchers to use field data to better understand psychological concepts. I discuss from an empirical economics point of view, steps for how to study cognition in large datasets and illustrate these steps with recent empirical papers.
Choice Bracketing
When making many choices, a person can broadly bracket them by assessing the consequences of all of them taken together, or narrowly bracket them by making each choice in isolation. We integrate research conducted in a wide range of decision contexts which shows that choice bracketing is an important determinant of behavior. Because broad bracketing allows people to take into account all the consequences of their actions, it generally leads to choices that yield higher utility. The evidence that we review, however, shows that people often fail to bracket broadly when it would be feasible for them to do so. In addition to documenting the diverse effects of bracketing, we also discuss factors that determine whether people bracket narrowly or broadly. We conclude with a discussion of normative aspects of bracketing and argue that there are some situations in which narrower bracketing results in superior decision making.
Guessing reveals internal models of perceptual precision
When observers lack sufficient information to support a confident response, they often guess. Guessing plays a pervasive role in visual cognition and working memory, yet the mechanisms that govern how observers generate guesses remain poorly understood. Standard models traditionally assume that responses produced in the absence of information are either uniformly distributed over feature space or are perhaps weighted towards prevailing environmental statistics. In contrast, here we consider an intriguing alternative: that guesses incorporate observers’ knowledge of their own perceptual capacities. We empirically measured guessing by eliciting responses under extreme target uncertainty (Experiment 1) as well as a novel “0ms presentation” approach in which no stimulus appeared but subjects believed one had (Experiment 2). We evaluated three accounts of guesses under these conditions: unsystematic (lapse) responding, biases toward environmental statistics, and a self-representational account in which guesses reflect observers’ knowledge of their own feature-dependent precision (e.g., preferring to guess feature values they believe they would be likely to miss). Guess responses were non-uniform and systematically biased toward feature values typically encoded with the least precision (e.g., oblique orientations) — a counterintuitive bias away from high-frequency, high-fidelity feature values (e.g., cardinal orientations). This complementary relationship between guessing and perceptual fidelity held within individuals and across paradigms, and was recoverable via an empirical-guess mixture model that replaced the standard uniform assumption with empirically measured guess distributions. Our findings challenge prevailing views that guesses reflect random noise, and suggest instead that guessing behavior reflects metacognitive knowledge of internal precision. Rather than defaulting to environmental priors, observers appear to model their own sensory limitations and leverage these representations to inform decisions in the absence of evidence. These results reframe guessing as a theoretically informative behavior that expresses observers’ own beliefs about their perceptual capacities. Significance Guessing is commonly treated as random noise in models of perception and memory, assumed to reflect lapses or uninformed responses. Instead, we show that human guesses are systematically structured across feature space: observers preferentially guess values they typically encode with the least precision, revealing a consistent, strategic bias away from high-fidelity representations. By directly measuring guess behavior on stimulus-absent trials and integrating these empirical distributions into a mixture model, we find that guesses on stimulus-present trials can be systematically recovered, and that they too form the complement of perceptual precision. These findings challenge foundational psychophysical modeling assumptions and position guessing as a strategic, informative behavior that engages self-representation.
Metacognitive experiences as information: Processing fluency in consumer judgment and decision making
Abstract Thinking is accompanied by metacognitive experiences of ease or difficulty. People draw on these experiences as a source of information that can complement or challenge the implications of declarative information. We conceptualize the operation of metacognitive experiences within the framework of feelings‐as‐information theory and review their implications for judgments relevant to consumer behavior, including popularity, trust, risk, truth, and beauty.
Metacognitive experiences as information: Processing fluency in consumer judgment and decision making
Abstract Thinking is accompanied by metacognitive experiences of ease or difficulty. People draw on these experiences as a source of information that can complement or challenge the implications of declarative information. We conceptualize the operation of metacognitive experiences within the framework of feelings‐as‐information theory and review their implications for judgments relevant to consumer behavior, including popularity, trust, risk, truth, and beauty.
