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Bayesian Revision vs. Information Distortion.

J Edward Russo1,2

  • 1SC Johnson College of Business, Cornell University, Ithaca, NY, United States.

Frontiers in Psychology
|September 14, 2018
PubMed
Summary
This summary is machine-generated.

Information distortion, a bias where new data favors existing beliefs, undermines Bayesian calculus. This unrecognized bias impacts decision-making in forecasting and statistical inference.

Keywords:
Bayesian calculusconnectionismdesirability biasforecastinginformation distortionlikelihood updatingrationalitystatistical inference

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Area of Science:

  • Cognitive Psychology
  • Decision Science
  • Bayesian Statistics

Background:

  • The Bayesian calculus provides a rational framework for updating beliefs with new evidence.
  • Information distortion, a bias where evidence is evaluated to favor pre-existing conclusions, challenges this framework.
  • This bias is often unrecognized and can be subtle, impacting rational decision-making.

Purpose of the Study:

  • To highlight the phenomenon of information distortion and its impact on Bayesian reasoning.
  • To explain why information distortion is widespread and often goes unrecognized.
  • To illustrate the potential negative consequences of this bias in professional contexts.

Main Methods:

  • Conceptual analysis of information distortion within the framework of Bayesian probability.
  • Review of cognitive and psychological factors contributing to the bias.
  • Examination of professional applications where information distortion can occur, such as forecasting and statistical inference.

Main Results:

  • Information distortion invalidates the independence assumption of Bayesian calculus by allowing prior beliefs to influence the evaluation of new data.
  • Individuals are typically unaware of their own susceptibility to this bias.
  • Partial mitigation strategies, like simultaneous data presentation, may reduce the impact of information distortion.

Conclusions:

  • Information distortion poses a significant threat to the rational application of Bayesian methods.
  • The desire for cognitive coherence can lead individuals to unconsciously distort information, compromising objective analysis.
  • Recognizing and addressing information distortion is crucial for improving accuracy in forecasting, consumer choice prediction, and experimental data interpretation.