Skip to main content

Prediction, Diagnosis, and Causal Thinking in Forecasting

  • Chapter
Behavioral Decision Making

Abstract

Imagine that you lived several thousand years ago and belonged to a tribe of methodologically sophisticated cave dwellers. Your methodological sophistication is such that you have available to you all present-day means of the methodological arsenal—details of the principles of deductive logic, probability theory, access to computational equipment, and the like. However, your level of substantive knowledge lags several thousand years behind your methodological sophistication. In particular, you have little knowledge about physics, chemistry, or biology. In recent years, your tribe has noted an alarming decrease in its birth rate. Furthermore, the tribe’s statistician estimates that unless the trend is shortly reversed, extinction is a real possibility. The tribe’s chief has accordingly launched an urgent project to determine the cause of birth. You are a member of the project team and have been assured that all means, including various forms of experimentation with human subjects, will be permitted to resolve this crucial problem.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 39.99
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 54.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  • Adelman, L. (1981). The influence of formal, substantive, and contextual task properties on the relative effectiveness of different forms of feedback in multiple-cue probability learning tasks, Organizational Behavior and Human Performance, 27, 423–442.

    Article  Google Scholar 

  • Brunswik, E. (1952). The conceptual framework of psychology, Chicago: University of Chicago Press.

    Google Scholar 

  • Camerer, C. F. (1981). The validity and utility of expert judgment. Unpublished Ph.D. dissertation, University of Chicago.

    Google Scholar 

  • Campbell, D. T. (1966). Pattern matching as an essential in distal knowing. In K. R. Hammond (Ed.), The psychology of Egon Brunswik. New York: Holt Rinehart & Winston.

    Google Scholar 

  • Campbell, D. T. (1969). Reforms as experiments. American Psychologist, 24, 409–429.

    Article  Google Scholar 

  • Campbell, D. T. (1975). Degrees of freedom and the case study. Comparative Political Studies, 8, 178–193.

    Google Scholar 

  • Campbell, D. T., & Stanley, J. C. (1963). Experimental and quasi-experimental designs for research. Chicago: Rand-McNally, 1963.

    Google Scholar 

  • Cook, T. D., & Campbell, D. T. (1979). Quasi-experimentation: Design and analysis for field settings. Chicago: Rand-McNally.

    Google Scholar 

  • Dawes, R. M. (1979). The robust beauty of improper linear models in decision making. American Psychologist, 34, 571–582.

    Article  Google Scholar 

  • Dawes, R. M., & Corrigan, B. (1974). Linear models in decision making. Psychological Bulletin, 81, 95–106.

    Article  Google Scholar 

  • Ehrenberg, A. S. C. (1975). Data reduction: Analyzing and interpreting statistical data. New York: Wiley.

    Google Scholar 

  • Einhorn, H. J. (1980). Learning from experience and suboptimal rules in decision making. In T. S. Wallsten (Ed.), Cognitive processes in choice and decision behavior. Hillsdale, NJ: Erlbaum.

    Google Scholar 

  • Einhorn, H. J., & Hogarth, R. M. (1978). Confidence in judgment: Persistence of the illusion of validity. Psychological Review, 85, 395–416.

    Article  Google Scholar 

  • Fischhoff, B. (1975). Hindsight ≠ foresight: The effect of outcome knowledge on judgment under uncertainty. Journal of Experimental Psychology: Human Perception and Performance, 1, 288–299.

    Article  Google Scholar 

  • Hammond, K. R. (1955). Probabilistic functional ism and the clinical method. Psychological Review, 62, 255–262.

    Article  PubMed  Google Scholar 

  • Helson, H. (1964). Adaptation-level theory. New York: Harper.

    Google Scholar 

  • Hogarth, R. M. (1975). Cognitive processes and the assessment of subjective probability distributions. Journal of the American Statistical Association, 70, 271–289.

    Article  Google Scholar 

  • Hogarth, R. M. (1981). Beyond discrete biases: Functional and dysfunctional aspects of judgmental heuristics. Psychological Bulletin, 90, 197–217.

    Article  Google Scholar 

  • Hogarth, R. M., & Makridakis, S. (1981). Forecasting and planning: An evaluation. Management Science, 27, 115–138.

    Article  Google Scholar 

  • Howard, R. A., Matheson, J. E., & North, D. W. (1972). The decision to seed hurricanes. Science, 176, 1191–1202.

    Article  PubMed  Google Scholar 

  • Jennings, D., Amabile, T. M., & Ross, L. (1982). Informal covariation assessment: Data-based vs. theory-based judgments. In D. Kahneman, P. Slovic, & A. Tversky (Eds.), Judgment under uncertainty: Heuristics and biases, New York: Cambridge University Press.

    Google Scholar 

  • Kahneman, D., & Tversky, A. (1972). Subjective probability: A judgment of representativeness. Cognitive Psychology, 3, 430–454.

    Article  Google Scholar 

  • Kahneman, D., & Tversky, A. (1979). Prospect theory: An analysis of decision under risk. Econometrica, 47, 263–291.

    Article  Google Scholar 

  • Killeen, P. T. (1978). Superstition: A matter of bias, not detectability. Science, 199, 88–90.

    Article  PubMed  Google Scholar 

  • Langer, E. J. (1975). The illusion of control. Journal of Personality and Social Psychology, 32, 311–328.

    Article  Google Scholar 

  • Lopes, L. L. (1982). Doing the impossible: A note on induction and the experience of randomness. Journal of Experimental Psychology: Human Learning and Memory, 8, 626–636.

    Article  Google Scholar 

  • Mackie, J. L. (1974). The cement of the universe: A study of causation. Oxford: Clarendon Press.

    Google Scholar 

  • Meehl, P. E. (1954). Clinical versus statistical prediction: A theoretical analysis and review of the literature. Minneapolis: University of Minnesota Press.

    Book  Google Scholar 

  • Nisbett, R. E., & Ross, L. D. (1980). Human inference: Strategies and shortcomings of social judgment. Englewood Cliffs: Prentice-Hall.

    Google Scholar 

  • Ortony, A. (1979). Beyond literal similarity. Psychological Review, 86, 161–180.

    Article  Google Scholar 

  • Sawyer, J. (1966). Measurement and prediction, clinical and statistical. Psychological Bulletin, 66, 178–200.

    Article  PubMed  Google Scholar 

  • Schustack, M. W., & Sternberg, R. J. (1981). Evaluation of evidence in causal inference. Journal of Experimental Psychology: General, 110, 101–120.

    Article  Google Scholar 

  • Shapiro, A. K. (1960). A contribution to the history of the placebo effect. Behavioral Science, 5, 109–135.

    Article  Google Scholar 

  • Shugan, S. M. (1980). The cost of thinking. Journal of Consumer Research, 7, 99–111.

    Article  Google Scholar 

  • Shweder, R. A. (1977). Likeness and likelihood in everyday thought: Magical thinking in judgments about personality. Current Anthropology, 18, 637–658.

    Article  Google Scholar 

  • Siegler, R. S. (1976). The effects of simple necessity and sufficiency relationships on children’s causal inferences. Child Development, 47, 1058–1063.

    Article  Google Scholar 

  • Siegler, R. S., & Liebert, R. M. (1974). Effects of contiguity, regularity, and age on children’s causal inferences. Developmental Psychology, 10, 574–579.

    Article  Google Scholar 

  • Simon, H. A. (1954). Spurious correlation: A causal interpretation. Journal of the American Statistical Association, 49, 467–479.

    Article  Google Scholar 

  • Skinner, B. F. (1966). The phylogeny and ontogeny of behavior. Science, 153, 1205–1213.

    Article  PubMed  Google Scholar 

  • Slovic, P., & Fischhoff, B. (1977). On the psychology of experimental surprises. Journal of Experimental Psychology: Human Perception and Performance, 3, 544–551.

    Article  Google Scholar 

  • Spetch, M. L., Wilkie, D. M., & Pinel, J. P. J. (1981). Backward conditioning: A reevaluation of the empirical evidence. Psychological Bulletin, 89, 163–175.

    Article  PubMed  Google Scholar 

  • Toda, M. (1977). Causality, conditional probability and control. In A. Aykac, & C. Brumat (Eds.), New developments in the applications of Bayesian methods. Amsterdam: North Holland.

    Google Scholar 

  • Tversky, A. (1977). Features of similarity. Psychological Review, 84, 327–352.

    Article  Google Scholar 

  • Tversky, A., & Kahneman, D. (1980). Causal schemas in judgments under uncertainty. In M. Fishbein (Ed.), Progress in social Psychology (Vol. 1). Hillsdale, NJ: Erlbaum.

    Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Editor information

Editors and Affiliations

Rights and permissions

Reprints and permissions

Copyright information

© 1985 Plenum Press, New York

About this chapter

Cite this chapter

Einhorn, H.J., Hogarth, R.M. (1985). Prediction, Diagnosis, and Causal Thinking in Forecasting. In: Wright, G. (eds) Behavioral Decision Making. Springer, Boston, MA. https://doi.org/10.1007/978-1-4613-2391-4_14

Download citation

  • DOI: https://doi.org/10.1007/978-1-4613-2391-4_14

  • Publisher Name: Springer, Boston, MA

  • Print ISBN: 978-1-4612-9460-3

  • Online ISBN: 978-1-4613-2391-4

  • eBook Packages: Springer Book Archive

Publish with us

Policies and ethics