On amelioration of human cognitive biases in binary decision making

Baocheng Geng; Pramod K. Varshney; Muralidhar Rangaswamy

doi:10.1109/GlobalSIP45357.2019.8969431

On amelioration of human cognitive biases in binary decision making

Baocheng Geng, Pramod K. Varshney, Muralidhar Rangaswamy

Research output: Chapter in Book/Entry/Poem › Conference contribution

12 Scopus citations

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 language	English (US)
Title of host publication	GlobalSIP 2019 - 7th IEEE Global Conference on Signal and Information Processing, Proceedings
Publisher	Institute of Electrical and Electronics Engineers Inc.
ISBN (Electronic)	9781728127231
DOIs	https://doi.org/10.1109/GlobalSIP45357.2019.8969431
State	Published - Nov 2019
Externally published	Yes
Event	7th IEEE Global Conference on Signal and Information Processing, GlobalSIP 2019 - Ottawa, Canada Duration: Nov 11 2019 → Nov 14 2019

Publication series

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

Conference

Conference	7th IEEE Global Conference on Signal and Information Processing, GlobalSIP 2019
Country/Territory	Canada
City	Ottawa
Period	11/11/19 → 11/14/19

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

Access to Document

10.1109/GlobalSIP45357.2019.8969431

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 Article 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

On amelioration of human cognitive biases in binary decision making. / Geng, Baocheng; Varshney, Pramod K.; Rangaswamy, Muralidhar.
GlobalSIP 2019 - 7th IEEE Global Conference on Signal and Information Processing, Proceedings. Institute of Electrical and Electronics Engineers Inc., 2019. 8969431 (GlobalSIP 2019 - 7th IEEE Global Conference on Signal and Information Processing, Proceedings).

Research output: Chapter in Book/Entry/Poem › Conference contribution

Geng, B, Varshney, PK & 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., 7th IEEE Global Conference on Signal and Information Processing, GlobalSIP 2019, Ottawa, Canada, 11/11/19. https://doi.org/10.1109/GlobalSIP45357.2019.8969431

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

Geng, Baocheng ; Varshney, Pramod K. ; Rangaswamy, Muralidhar. / On amelioration of human cognitive biases in binary decision making. GlobalSIP 2019 - 7th IEEE Global Conference on Signal and Information Processing, Proceedings. Institute of Electrical and Electronics Engineers Inc., 2019. (GlobalSIP 2019 - 7th IEEE Global Conference on Signal and Information Processing, Proceedings).

@inproceedings{42a21838cd664ca7a417dfa1641954bf,

title = "On amelioration of human cognitive biases in binary decision making",

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.",

keywords = "Behavioral hypothesis testing, Cognitive biases amelioration, Human decision making, Information fusion.",

author = "Baocheng Geng and Varshney, {Pramod K.} and Muralidhar Rangaswamy",

note = "Publisher Copyright: {\textcopyright} 2019 IEEE.; 7th IEEE Global Conference on Signal and Information Processing, GlobalSIP 2019 ; Conference date: 11-11-2019 Through 14-11-2019",

year = "2019",

month = nov,

doi = "10.1109/GlobalSIP45357.2019.8969431",

language = "English (US)",

series = "GlobalSIP 2019 - 7th IEEE Global Conference on Signal and Information Processing, Proceedings",

publisher = "Institute of Electrical and Electronics Engineers Inc.",

booktitle = "GlobalSIP 2019 - 7th IEEE Global Conference on Signal and Information Processing, Proceedings",

}

TY - GEN

T1 - On amelioration of human cognitive biases in binary decision making

AU - Geng, Baocheng

AU - Varshney, Pramod K.

AU - Rangaswamy, Muralidhar

PY - 2019/11

Y1 - 2019/11

N2 - 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.

AB - 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.

KW - Behavioral hypothesis testing

KW - Cognitive biases amelioration

KW - Human decision making

KW - Information fusion.

UR - http://www.scopus.com/inward/record.url?scp=85079288440&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=85079288440&partnerID=8YFLogxK

U2 - 10.1109/GlobalSIP45357.2019.8969431

DO - 10.1109/GlobalSIP45357.2019.8969431

M3 - Conference contribution

AN - SCOPUS:85079288440

T3 - GlobalSIP 2019 - 7th IEEE Global Conference on Signal and Information Processing, Proceedings

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

PB - Institute of Electrical and Electronics Engineers Inc.

T2 - 7th IEEE Global Conference on Signal and Information Processing, GlobalSIP 2019

Y2 - 11 November 2019 through 14 November 2019

ER -

On amelioration of human cognitive biases in binary decision making

Abstract

Publication series

Conference

Keywords

ASJC Scopus subject areas

Access to Document

Other files and links

Fingerprint

Cite this