Paradoxical effects of base rates and representation in category learning

The inverse base rate effect (IBRE) continues to be a puzzling case of decision making on the basis of conflicting information in human category learning. After being trained via feedback over trials to assign combinations of cues to high- and low-frequency categories, participants tend to respond with the low-frequency category to an otherwise perfectly conflicting pair of test cues, contrary to the category base rates. Our Experiment 1 demonstrated that decision making on the basis of an explicit summary of the cue-outcome and outcome base rate information from the standard learning task does not result in the effect. The remaining experimental conditions evaluated the necessary and sufficient conditions for the effect by systematically exploring experimental deviations between the standard learning task and the pure decision-making task. In partial disagreement with both recent theoretical accounts of the effect, these experiments indicate that asymmetric outcome representation and profound base rate neglect are individually necessary and jointly sufficient conditions. Broader theoretical implications are discussed.