Is Human Information Processing Affected by Emotional and Cognitive Biases? Evidence from the Stock Market

2015 ◽  
Author(s):  
Nicolas Prrllochs ◽  
Stefan Feuerriegel ◽  
Dirk Neumann
Keyword(s):  
Information Processing ◽  
Stock Market ◽  
Cognitive Biases ◽  
Human Information Processing

Confirmation and Cognitive Bias in Design Cognition

2012 ◽  
Author(s):  
Gregory M. Hallihan ◽  
Hyunmin Cheong ◽  
L. H. Shu
Keyword(s):  
Information Processing ◽  
Analogical Reasoning ◽  
Design Research ◽  
Cognitive Biases ◽  
Confirmation Bias ◽  
Psychological Research ◽  
Human Information Processing ◽  
Concept Generation ◽  
Design Cognition ◽  
Concept Evaluation

The desire to better understand design cognition has led to the application of literature from psychology to design research, e.g., in learning, analogical reasoning, and problem solving. Psychological research on cognitive heuristics and biases offers another relevant body of knowledge for application. Cognitive biases are inherent biases in human information processing, which can lead to suboptimal reasoning. Cognitive heuristics are unconscious rules utilized to enhance the efficiency of information processing and are possible antecedents of cognitive biases. This paper presents two studies that examined the role of confirmation bias, which is a tendency to seek and interpret evidence in order to confirm existing beliefs. The results of the first study, a protocol analysis involving novice designers engaged in a biomimetic design task, indicate that confirmation bias is present during concept generation and offer additional insights into the influence of confirmation bias in design. The results of the second study, a controlled experiment requiring participants to complete a concept evaluation task, suggest that decision matrices are effective tools to reduce confirmation bias during concept evaluation.

Das Potenzial der Strategischen Vorausschau zur Reduktion kognitiver Verzerrungen

2019 ◽  
Vol 60 (3) ◽  
pp. 19-22
Author(s):  
Marion A. Weissenberger-Eibl ◽  
Tamara Huber
Keyword(s):  
Information Processing ◽  
Cognitive Biases ◽  
Group Composition ◽  
Human Information Processing ◽  
Future Developments ◽  
Strategic Foresight ◽  
Human Thinking ◽  
World Information ◽  
The One

In order to secure a long-term competitive advantage in an increasingly complex world, information gathering, evaluation and exploitation is vital for uncovering future developments and dynamics in the corporate environment. The Strategic Foresight methods systematize the process of information processing, allowing a targeted look into the future. The benefits of such methods depend largely on the individuals who perform them. They may be subject to dysfunctional ways of thinking and behaving that evolves from mental models and the restricted ability of human information processing for coping with complexity and reflecting reality. On the one hand, the methods of Strategic Foresight contribute to the reduction of human dysfunctions, so called cognitive biases, by the approach design. On the other hand, the group composition of the employees involved and their degree of heterogeneity also have the potential to minimize biases. Applying approaches from cognitive science for human thinking in the field of Strategic Foresight outlines the contribution of foresight methods for reducing individual dysfunctions.

Information transformation: Some missing links

2007 ◽  
Vol 26 (3) ◽  
pp. 157-172
Author(s):  
Ivan P. Vaghely ◽  
Pierre-André Julien ◽  
André Cyr
Keyword(s):  
Decision Making ◽  
Grounded Theory ◽  
Information Processing ◽  
Knowledge Creation ◽  
Best Practice ◽  
Participant Observation ◽  
Human Information Processing ◽  
Process Information ◽  
Information Transformation ◽  
Efficient Information

Using grounded theory along with participant observation and interviews the authors explore how individuals in organizations process information. They build a model of human information processing which links the cognitivist-constructionist perspective to an algorithmic-heuristic continuum. They test this model using non-parametric procedures and find interesting results showing links to efficient information processing outcomes such as contributions to decision-making, knowledge-creation and innovation. They also identify some elements of best practice by efficient human information processing individuals whom they call the “information catalysts”.

BASE RATE NEGLECT FOR THE WEALTH OF INTERACTING PEOPLE

2010 ◽  
Vol 13 (05) ◽  
pp. 607-619 ◽  
Author(s):  
DIEMO URBIG
Keyword(s):  
Information Processing ◽  
Social Learning ◽  
Learning Process ◽  
Base Rate ◽  
Human Information Processing ◽  
Base Rates ◽  
Base Rate Neglect ◽  
Positive Externalities ◽  
Rate Information

Previous research investigating base rate neglect as a bias in human information processing has focused on isolated individuals. This study complements this research by showing that in settings of interacting individuals, especially in settings of social learning, where individuals can learn from one another, base rate neglect can increase a population's welfare. This study further supports the research arguing that a population with members biased by neglecting base rates does not need to perform worse than a population with unbiased members. Adapting the model of social learning suggested by Bikhchandani, Hirshleifer and Welch (The Journal of Political Economy100 (1992) 992–1026) and including base rates that differ from generic cases such as 50–50, conditions are identified that make underweighting base rate information increasing the population's welfare. The base rate neglect can start a social learning process that otherwise had not been started and thus base rate neglect can generate positive externalities improving a population's welfare.

scholarly journals On the interrelation of 1/f neural noise and norepinephrine system activity during motor response inhibition

2019 ◽  
Vol 121 (5) ◽  
pp. 1633-1643 ◽  
Author(s):  
Maik Pertermann ◽  
Moritz Mückschel ◽  
Nico Adelhöfer ◽  
Tjalf Ziemssen ◽  
Christian Beste
Keyword(s):  
Information Processing ◽  
Cognitive Control ◽  
Inhibitory Control ◽  
Response Inhibition ◽  
Pupil Diameter ◽  
Human Information Processing ◽  
System Activity ◽  
Neural Noise ◽  
Control Processes ◽  
Norepinephrine System

Several lines of evidence suggest that there is a close interrelation between the degree of noise in neural circuits and the activity of the norepinephrine (NE) system, yet the precise nexus between these aspects is far from being understood during human information processing and cognitive control in particular. We examine this nexus during response inhibition in n = 47 healthy participants. Using high-density EEG recordings, we estimate neural noise by calculating “1/ f noise” of those data and integrate these EEG parameters with pupil diameter data as an established indirect index of NE system activity. We show that neural noise is reduced when cognitive control processes to inhibit a prepotent/automated response are exerted. These neural noise variations were confined to the theta frequency band, which has also been shown to play a central role during response inhibition and cognitive control. There were strong positive correlations between the 1 /f neural noise parameter and the pupil diameter data within the first 250 ms after the Nogo stimulus presentation at centro-parietal electrode sites. No such correlations were evident during automated responding on Go trials. Source localization analyses using standardized low-resolution brain electromagnetic tomography show that inferior parietal areas are activated in this time period in Nogo trials. The data suggest an interrelation of NE system activity and neural noise within early stages of information processing associated with inferior parietal areas when cognitive control processes are required. The data provide the first direct evidence for the nexus between NE system activity and the modulation of neural noise during inhibitory control in humans. NEW & NOTEWORTHY This is the first study showing that there is a nexus between norepinephrine system activity and the modulation of neural noise or scale-free neural activity during inhibitory control in humans. It does so by integrating pupil diameter data with analysis of EEG neural noise.

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