On amelioration of human cognitive biases in binary decision making

Baocheng Geng, Pramod K. Varshney, Muralidhar Rangaswamy

Research output: Chapter in Book/Report/Conference proceedingConference contribution

Abstract

We study the behavior of cognitively biased humans in decision making under the binary hypothesis testing framework. Rationality of humans is modeled via prospect theory, which utilizes a value function and a weight function to characterize humans' distorted perception of costs and probabilities. Following psychology studies which suggest that humans make decisions by choosing an alternative that yields the minimum expected costs based on received evidence, we show that a cognitively biased human employs an likelihood ratio test (LRT) in the prospect theoretic hypothesis testing framework. We further propose three approaches to ameliorate the side effects of cognitive biases and help humans make higher quality decisions. Simulations are presented to corroborate the theoretical results.

Original languageEnglish (US)
Title of host publicationGlobalSIP 2019 - 7th IEEE Global Conference on Signal and Information Processing, Proceedings
PublisherInstitute of Electrical and Electronics Engineers Inc.
ISBN (Electronic)9781728127231
DOIs
StatePublished - Nov 2019
Event7th IEEE Global Conference on Signal and Information Processing, GlobalSIP 2019 - Ottawa, Canada
Duration: Nov 11 2019Nov 14 2019

Publication series

NameGlobalSIP 2019 - 7th IEEE Global Conference on Signal and Information Processing, Proceedings

Conference

Conference7th IEEE Global Conference on Signal and Information Processing, GlobalSIP 2019
CountryCanada
CityOttawa
Period11/11/1911/14/19

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Keywords

  • Behavioral hypothesis testing
  • Cognitive biases amelioration
  • Human decision making
  • Information fusion.

ASJC Scopus subject areas

  • Information Systems
  • Information Systems and Management
  • Artificial Intelligence
  • Computer Vision and Pattern Recognition
  • Signal Processing

Cite this

Geng, B., Varshney, P. K., & Rangaswamy, M. (2019). On amelioration of human cognitive biases in binary decision making. In GlobalSIP 2019 - 7th IEEE Global Conference on Signal and Information Processing, Proceedings [8969431] (GlobalSIP 2019 - 7th IEEE Global Conference on Signal and Information Processing, Proceedings). Institute of Electrical and Electronics Engineers Inc.. https://doi.org/10.1109/GlobalSIP45357.2019.8969431