Heuristics for clueless agents: how to get away with ignoring what matters most in ordinary decision-making
David Thorstad and Andreas Mogensen (Global Priorities Institute, Oxford University)
GPI Working Paper No. 2-2020
Even our most mundane decisions have the potential to significantly impact the long-term future, but we are often clueless about what this impact may be. In this paper, we aim to characterize and solve two problems raised by recent discussions of cluelessness, which we term the Problems of Decision Paralysis and the Problem of Decision-Making Demandingness. After reviewing and rejecting existing solutions to both problems, we argue that the way forward is to be found in the distinction between procedural and substantive rationality. Clueless agents have access to a variety of heuristic decision-making procedures which are often rational responses to the decision problems that they face. By simplifying or even ignoring information about potential long-term impacts, heuristics produce effective decisions without demanding too much of ordinary decision-makers. We outline two classes of problem features bearing on the rationality of decision-making procedures for clueless agents, and show how these features can be used to shed light on our motivating problems.
Other working papers
How effective is (more) money? Randomizing unconditional cash transfer amounts in the US – Ania Jaroszewicz (University of California San Diego), Oliver P. Hauser (University of Exeter), Jon M. Jachimowicz (Harvard Business School) and Julian Jamison (University of Oxford and University of Exeter)
We randomized 5,243 Americans in poverty to receive a one-time unconditional cash transfer (UCT) of $2,000 (two months’ worth of total household income for the median participant), $500 (half a month’s income), or nothing. We measured the effects of the UCTs on participants’ financial well-being, psychological well-being, cognitive capacity, and physical health through surveys administered one week, six weeks, and 15 weeks later. While bank data show that both UCTs increased expenditures, we find no evidence that…
Misjudgment Exacerbates Collective Action Problems – Joshua Lewis (New York University) et al.
In collective action problems, suboptimal collective outcomes arise from each individual optimizing their own wellbeing. Past work assumes individuals do this because they care more about themselves than others. Yet, other factors could also contribute. We examine the role of empirical beliefs. Our results suggest people underestimate individual impact on collective problems. When collective action seems worthwhile, individual action often does not, even if the expected ratio of costs to benefits is the same. …
It Only Takes One: The Psychology of Unilateral Decisions – Joshua Lewis (New York University) et al.
Sometimes, one decision can guarantee that a risky event will happen. For instance, it only took one team of researchers to synthesize and publish the horsepox genome, thus imposing its publication even though other researchers might have refrained for biosecurity reasons. We examine cases where everybody who can impose a given event has the same goal but different information about whether the event furthers that goal. …