Related Experiment Video
Updated: Jan 2, 2026

Measuring the Subjective Value of Risky and Ambiguous Options using Experimental Economics and Functional MRI Methods
Published on: September 19, 2012
Belief digitization: Do we treat uncertainty as probabilities or as bits?
Samuel G B Johnson1, Thomas Merchant2, Frank C Keil3
1School of Management, University of Bath.
Abstract:
Humans are often characterized as Bayesian reasoners. Here, we question the core Bayesian assumption that probabilities reflect degrees of belief. Across eight studies, we find that people instead reason in a digital manner, assuming that uncertain information is either true or false when using that information to make further inferences. Participants learned about 2 hypotheses, both consistent with some information but one more plausible than the other. Although people explicitly acknowledged that the less-plausible hypothesis had positive probability, they ignored this hypothesis when using the hypotheses to make predictions. This was true across several ways of manipulating plausibility (simplicity, evidence fit, explicit probabilities) and a diverse array of task variations. Taken together, the evidence suggests that digitization occurs in prediction because it circumvents processing bottlenecks surrounding people's ability to simulate outcomes in hypothetical worlds. These findings have implications for philosophy of science and for the organization of the mind. (PsycInfo Database Record (c) 2020 APA, all rights reserved).
Related Concept Videos
Uncertainty: Overview
Propagation of Uncertainty from Random Error
Uncertainty in Measurement: Significant Figures
Propagation of Uncertainty from Systematic Error
Uncertainty in Measurement: Reading Instruments
Uncertainty: Confidence Intervals

