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Normative Principles for Decision-Making in Natural Environments
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NSTL
Annual Reviews
The decisions we make are shaped by a lifetime of learning. Past experience guides the way that we encode information in neural systems for perception and valuation, and determines the information we retrieve when making decisions. Distinct literatures have discussed how lifelong learning and local context shape decisions made about sensory signals, propositional information, or economic prospects. Here, we build bridges between these literatures, arguing for common principles of adaptive rationality in perception, cognition, and economic choice. We discuss how a single common framework, based on normative principles of efficient coding and Bayesian inference, can help us understand a myriad of human decision biases, including sensory illusions, adaptive aftereffects, choice history biases, central tendency effects, anchoring effects, contrast effects, framing effects, congruency effects, reference-dependent valuation, nonlinear utility functions, and discretization heuristics. We describe a simple computational framework for explaining these phenomena.
NSTL
Annual Reviews
