[HN Gopher] We don't have a hundred biases, we have the wrong model
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       We don't have a hundred biases, we have the wrong model
        
       Author : salonium_
       Score  : 86 points
       Date   : 2022-07-21 17:14 UTC (5 hours ago)
        
 (HTM) web link (www.worksinprogress.co)
 (TXT) w3m dump (www.worksinprogress.co)
        
       | mstipetic wrote:
       | 40% of US believes the earth was created in the last 10,000
       | years. Any model relying on rationality has no chance here
        
       | twawaaay wrote:
       | We have some wrong models but this does not mean we don't have
       | biases.
       | 
       | The simplest way to disprove it:
       | 
       | If we did not have biases but wrong models, fixing models would
       | make us unbiased.
       | 
       | But that works very rarely in real life.
        
       | leobg wrote:
       | My reading of the article is an application of Chesterton's Fence
       | to so-called cognitive biases. Not to see them as a mere defect,
       | or proof of our fallibility. But to instead look for the
       | objective for which they perhaps truly are the most reasonable
       | solution.
       | 
       | Example from the article:
       | 
       | > Many costly signals are inherently wasteful. Money, time, or
       | other resources are burnt. And wasteful acts are the types of
       | things that we often call irrational. A fancy car may be a
       | logical choice if you are seeking to signal wealth, despite the
       | harm it does to your retirement savings. Do you need help to
       | overcome your error in not saving for retirement, or an
       | alternative way to signal your wealth to your intended audience?
       | You can only understand this if you understand the objective.
        
         | hirundo wrote:
         | For instance we have a neural-cognitive "bias" toward
         | recognizing moving versus stationary objects. Our attention is
         | prejudiced in favor of things-that-move. This is useful when it
         | comes to detecting potential predators, prey, mates, etc. So a
         | lack of a bias can be a defect to the economic actor.
        
         | nine_k wrote:
         | Conspicuous consumption can be rational, or at least beneficial
         | in the evolutionary sense.
         | 
         | If you are a lawyer with a good practice, you are expected to
         | drive a nice large car. If you drove a battered old economy-
         | class car, your clients might see it as a sign that something
         | is wrong with you (there are several plausible ideas) and shun
         | dealing with you. There go fat fees and investment savings.
        
       | csours wrote:
       | I'm not sure I understand. It seems like the author is looking
       | for "learned behavior" as the model for human decision making.
        
         | [deleted]
        
       | throw93232 wrote:
       | >> epicycles were still not enough to describe what could be
       | observed.
       | 
       | Epicycles based models were far superior in practice, such as
       | predicting planetary conjunctions. Heliocentric models did not
       | really catched up, until Newton invented gravity and calculus.
       | 
       | And centre of mass of solar system (barycenter in Newtonian
       | physics), is outside of Sun, so heliocentric models technically
       | never gave solid predictions! Stellar parallax (main prediction
       | from Copernicus theory) was not confirmed until 19th century!
       | Heliocentrism is mainly philosophical concept!
       | 
       | I will stick with my primitive old thinking and biases, thank
       | you! If I get mugged a few times in a neighbourhood, I will
       | assume it is not safe. There is no need to overthink it!
        
         | croes wrote:
         | Invented gravity?
        
           | dataflow wrote:
           | They probably mean invented gravity as a formal concept, not
           | as a physical phenomenon.
           | 
           | Like, say, the invention of the number 0.
           | https://en.wikipedia.org/wiki/0
        
             | deckeraa wrote:
             | Agreed.
             | 
             | Prior to Newton's conception of gravity as objects
             | attracting one another, the primary model used was the
             | Aristotelian one, in which things tended to go to the
             | "zone" where they belong. Things composed of earth (like a
             | rock) tended to sink towards the center of the earth, while
             | things composed of fire or air tended to rise towards the
             | sky.
        
           | throw93232 wrote:
           | English is not my native language obviously.
        
             | andrewflnr wrote:
             | Not at all obvious, you did fine.
        
           | smegsicle wrote:
           | gravity is a notation for describing and predicting an
           | arbitrary subset of natural processes
           | 
           | you might as well contest that he invented calculus
        
         | zwkrt wrote:
         | I would normally be skeptical of an article that starts with a
         | description of epicycles because it probably means that
         | whatever is going to be described next is totally bullshit.
         | 
         | In this case I'm not so sure. As a plebeian normie, it seems
         | like the "rational actor" model of economics has a lot of
         | problems.
         | 
         | Now I do believe that All people are All of the time trying to
         | achieve their goals and meet their needs as can best be
         | achieved in the given situation and in the way that they best
         | know how.
         | 
         | But this includes a junkie digging through trash for things to
         | sell, a housewife poisoning her abusive husband, and a
         | schizophrenic blowing up mailboxes to stop an international
         | plot against her. It includes a recent widower staying in bed
         | for two weeks. It certainly includes your exclusion of an
         | entire neighborhood and its thousands of inhabitants from your
         | care due to some harrowing experiences.
         | 
         | As I understand it, most economists, and certainly the ones
         | that influence policy, are not really thinking of these things
         | as "rational". To them rational means "increasing your own
         | wealth or exchanging your money in the most efficient and
         | expedient way possible". And that's very good because this is
         | the way that corporations and rich people that hire people to
         | manage their money effectively operate. But it doesn't really
         | work for normal people in normal situations. Our lack of
         | information about our surroundings and our incredibly wide
         | array of emotional states doesnt leave a lot of room for
         | rationality.
         | 
         | I won't really expound on it because this is already so long,
         | but having a single definition of rationality also excludes any
         | possibility of having an informed multicultural viewpoint.
        
           | throw93232 wrote:
           | People are rational, model works.
           | 
           | But you can not approximate complex system like human brain
           | with couple of variables. There are not hundreds, but
           | millions of biases.
           | 
           | Advanced epicycle models had dozens moving parts. JPL
           | planetary ephemerides (modern equivalent in polynomials) have
           | several millions of parameters and terabytes of equations.
        
       | JoshCole wrote:
       | If you apply the cognitive biases model to algorithms which have
       | superhuman performance in various games - like AlphaZero,
       | DeepBlue, Pluribus, and so on - the natural result is to conclude
       | that these models are predictably irrational. The reason you get
       | this conclusion is because it turns out to be necessary to trade
       | off theoretical optimal answers for the sake of speed. The
       | behavioral economic view of human irrationality ought to be
       | considered kind of dumb in view of that result. But it is
       | actually so much worse than that for the field, because the math
       | shows that sacrificing optimality for speed would be something
       | that even an infinitely fast computational intelligence would be
       | _forced_ to do. It isn 't irrational; it is a fundamentally
       | necessary tradeoff. In imperfect information games your strategy
       | space is continuous, EV is a function of policy, and many games
       | even have continuous action spaces. If you thought Go was high
       | branching factor you thought wrong; Go is an example of a
       | freakishly low branching factor. It is infinitely smaller than
       | the branching factor in relatively trivial decision problems.
       | 
       | If you've never looked at cognitive biases through the lens of
       | performance optimization you should try it. What seems like an
       | arbitrary list from the bias perspective becomes clever
       | approximative techniques in the performance optimization
       | perspective.
       | 
       | I often think about why this isn't more commonly known among
       | people who call themselves rationalists and tend to spend a lot
       | of time discussing cognitive bias. They seem to be trending
       | toward a belief that general superintelligence is of infinite
       | power, doubling down on their fallacious and hubristic
       | appreciation for the power of intelligence.
       | 
       | I say this, because when you apply the algorithms that don't have
       | these biases - the behavioral economist view wouldn't find them
       | to be irrational since they stick to the math, they follow things
       | like the coherence principles for how we ought to work with
       | probabilities as seen in works by Jayne, Finett, and so on - they
       | either don't terminate, or, if you force them to do so... well...
       | they lose to humans; even humans who aren't very good at the
       | task.
        
         | bobthechef wrote:
         | It sound like you're talking about, or at least brushing up
         | against, prudential judgement[0]. Sometimes, the optimal move
         | is not to seek the optimum.
         | 
         | An obvious class of problems is where determining the optimum
         | takes more time than the lifetime of the problem. Say you need
         | to write an algorithm at work that does X, and you need X by
         | tomorrow. If it would take you a week to find the theoretical
         | optimum, then the optimum in a "global" sense is to deliver the
         | best you can within the constraints, not the abstract
         | theoretical optimum. The time to produce the solution is part
         | of the total cost. An imprudent person would either say it's
         | not possible, or never deliver the solution in time.
         | 
         | [0] https://www.newadvent.org/cathen/12517b.htm
        
         | Barrin92 wrote:
         | >why this isn't more commonly known among people who call
         | themselves rationalists
         | 
         | because most of these people do nothing else but writing blogs
         | about rationalism. Same reason university tests are sometimes
         | so removed from practicality compared to evaluation criteria in
         | business, the people who make them do nothing else but write
         | these tests.
         | 
         | I suspect if you put some rationalists into the trenches in the
         | Donbass for a week they'd quickly have a more balanced view of
         | what's needed to solve a problem besides rational
         | contemplation.
        
         | snovv_crash wrote:
         | The thing about continuous space solutions is that they are
         | typically differentiable, which means you can use a gradient
         | descent or LM optimization rather than needing to fully explore
         | the solution space. Typically there are large regions which are
         | heuristically excludable, which is what you are getting at I
         | think, but even an unbiased sampling plus gradient descent
         | often makes problems much more tractable than discrete
         | problems.
        
           | whimsicalism wrote:
           | Only if the local optima are good.
        
           | JoshCole wrote:
           | The type of learning problem where I agree with your point is
           | in something like learning how to classify hand written
           | digits. My point about the continuous nature being
           | unsearchable in practice is about recursive forms - if I
           | choose this policy, my opponent will choose to _react_ to the
           | fact that I had that policy.
           | 
           | In your learning problem where thing were made tractable by
           | differentiation you have something like an elevation map that
           | you are following, but in the multi-stage decision problem
           | you have something more like a fractal elevation map. When
           | you want to know the value of a particular point on the
           | elevation map you have to look for the highest point or the
           | lowest point on the elevation map you get by zooming in on
           | the area which is the resultant of your having chosen a
           | particular policy.
           | 
           | The problem is that since this is a multi-agent environment
           | they can react to your policy choice. So they can for example
           | choose to have you get a high value only if you have the
           | correct password entered on a form. That elevation map is
           | designed to be a plain everywhere and another fractal zoom
           | corresponding with a high utility or a low error term only at
           | the point where you enter the right password.
           | 
           | Choose a random point and you aren't going to have any
           | information about what the password was. The optimization
           | process won't help you. So you have to search. One way to do
           | that is to do a random search; if you do that you eventually
           | find a differing elevation - assuming one exists. But what if
           | there were two passwords - one takes you to a low elevation
           | fractal world that corresponds with a low reward because it
           | is a honeypot. The other takes you to the fractal zoom where
           | the elevation map is conditioned on you having root access to
           | the system.
           | 
           | This argument shows us that we actually would need to search
           | over every point to get the best answer possible. Yet if we
           | do that we have to search over the entire continuous
           | distribution for our policy. Since by definition there are an
           | infinite number of states a computer with infinite search
           | speed can't enumerate them; there is another infinite fractal
           | under every policy choice that also needs full enumeration.
           | We have non-termination by a diagonalization argument for a
           | computer that has infinite speed.
           | 
           | Now observe that in our reality passwords exist. Less extreme
           | - notice that reacting to policy choice in general, for
           | example, moving out of the way of a car that drives toward
           | you but not changing the way you would walk if it doesn't,
           | isn't actually an unusual property in decision problems. It
           | is normal.
        
         | brrrrrm wrote:
         | > apply the cognitive biases model to algorithms which have
         | superhuman performance in various games
         | 
         | Could you give an example of this?
        
           | JoshCole wrote:
           | I think approaching it in this direction is horrible because
           | it directs attention to the wrong things; when you look at
           | specific examples you're always in a _more specific
           | situation_ and if you 're in a _more specific situation_ it
           | means that your situation is _more computationally tractable_
           | than the _general situation_ which was being handled by the
           | algorithm. So trying to focus on examples is actually going
           | to give you weird inversions where the rules that applied in
           | general don 't apply to the specific situation.
           | 
           | You need to come about it from the opposite direction - from
           | the problem descriptions to the necessary constraints on your
           | solution.
           | 
           | That said, there are so many examples that I feel kind of
           | overwhelmed. Starting with biases that start with A:
           | 
           | - Anthropic bias
           | 
           | The algorithms have this tendency. They use counterfactual
           | reasoning to determine that assuming a nash player alike to
           | them is their opponent when making their decisions. Sometimes
           | they don't have a nash opponent, but they persist in this
           | assumption anyway. In the cognitive bias framing this
           | tendency is error. In the game theoretic framing this
           | corresponds with minimizing the degree to which you would be
           | exploited. You can find times where the algorithm plays
           | against something that isn't nash and so it was operating
           | according to a flawed model. You can call it biased for
           | assuming that others operated according to that flawed model.
           | From a complexity perspective this assumption lets you drop
           | an infinite number of continuous strategy distributions from
           | consideration - with strong theoretical backing for why it
           | won't hurt you to do so - since nash is optimal according to
           | some important metrics.
           | 
           | - Attentional bias
           | 
           | The tendency to pay attention to some things and not other
           | things. Some examples of times where we do that are with
           | alpha beta pruning. You can find moves that involve sacrifice
           | that show the existence of this bias. The conceit in the
           | cognitive bias framing is that it is stupid because some of
           | the things might be important. The justification is that it
           | some things are more promising than others and we have
           | limited computational budget. Better to stop exploring the
           | things which are not promising since they are not promising
           | and direct efforts to where they are promising. Something
           | like an upper confidence bound tree search in the cognitive
           | bias model would turn balancing the explore exploit dynamic
           | as part of approximating the nash equillibrium into erroneous
           | reasoning because it doesn't choose to explore everything is
           | an example of the lesser form of anchoring effects as they
           | relate to attentional bias. It weights the action values
           | according to the promising rollout more highly.
           | 
           | - Apophenia
           | 
           | Hashing techniques are used to reduce dimensionality. There
           | is an error term here but you gain faster reasoning speed.
           | Seen in blueprint abstraction; that we're hasing down to
           | something using similarity to help bucket similar things
           | gives rise to things like selective attention (another bias,
           | and kind of related to this general category of bias).
           | 
           | Jumping ahead to something like confirmation bias the
           | heuristic that all these algorithms are using are flawed in
           | various ways. They see that they are flawed after a node
           | expansion and update their beliefs, but they don't update the
           | heuristic. In fact if a flawed heuristic was working well
           | such that it won we would have greater confidence rather than
           | lesser confidence in the bias.
        
       | toomim wrote:
       | I wrote a PhD dissertation that made this point in 2013, _and_
       | proposed a new  "helocentric" economic model.
       | 
       | The key shift is to move the utility function from evaluating a
       | future state of the world to evaluating the utility of an
       | opportunity for attention in _the present moment_.
       | 
       | All the "cognitive errors" that we humans make are with respect
       | to predicting the future. But we all know what we find appealing
       | in the present moment.
       | 
       | And when we look at economics from this new perspective of the
       | present, we get an economics of _attention_. We can measure, and
       | model, for the first time, how we choose how to allocate the
       | scarce resource of the internet age: human attention.
       | 
       | I dropped out of academia as soon as I finished this work, and
       | never publicized it broadly within academia, but I still believe
       | it has great potential impact for economics, and it would be
       | great to get the word out.
       | 
       | https://invisible.college/attention/dissertation.html
        
         | snapcaster wrote:
         | Thanks for sharing this. Very interesting idea
        
           | toomim wrote:
           | Thank you for saying so!
        
         | phkahler wrote:
         | >> All the "cognitive errors" that we humans make are with
         | respect to predicting the future. But we all know what we find
         | appealing in the present moment.
         | 
         | I like to say that most human problems are a result of the
         | conflict between short and long term goals. This is true at all
         | levels from individuals to small groups, companies, and states.
         | Many, many "failures" can be framed this way. I would say it's
         | not even a problem of predicting the future (thought that is an
         | issue) but of failure to prioritize the future over the
         | present.
        
       | just_boost_it wrote:
       | I'm not so sure about this. I'm not an expert at all, but I can
       | see in the world around me that biases are real. Sure, heuristics
       | are important in the trade off between accuracy and speed, so I
       | see that they are necessary. However, isn't the problem that we
       | use the same heuristics to bet on a coin flip as we would use to
       | bet on whether we make it past a lion to safety? It seems like
       | the "right" is model is only correct in a small number of cases,
       | but we can't change our unconscious biases to fit the situation.
       | It seems that the bias model explains why we make bad decisions
       | in many areas of our lives.
        
       | jjk166 wrote:
       | The rational actor model assumes that a person will behave
       | optimally - using all information available to make and carry out
       | the best decision possible for their goals.
       | 
       | I strongly suspect that a better model is that people instead of
       | optimizing their outcomes instead optimize the ease of decision
       | making while still getting an acceptable course of action. Most
       | of our biases serve to either allow us to make decisions quicker
       | or minimize the odds of catastrophically bad outcomes for our
       | decisions, which fit nicely with this model. The fact is that
       | indecision is often worse than a bad decision, and the
       | evolutionary forces that shaped our brains are stochastic in
       | nature and thus don't dock points for missed opportunities.
        
         | canjobear wrote:
         | This is "bounded rationality" [1], where people make the best
         | decisions possible given computational constraints on how they
         | make decisions. A lot of interesting work tries to derive human
         | cognitive biases from this idea.
         | 
         | [1] https://en.wikipedia.org/wiki/Bounded_rationality
        
         | spacebanana7 wrote:
         | The idea you're describing sounds similar to Satisficing Theory
         | [1]. I agree this approach does a much better job of describing
         | real life decision making than the traditional rational actor
         | model. Unfortunately, Satisficing rarely gets discussed (at
         | least in my experience) in mainstream economics/psychology,
         | despite having been around since the 1950s.
         | 
         | [1] https://en.wikipedia.org/wiki/Satisficing
        
       | beefman wrote:
       | No mention of ergodicity economics, which resolves a lot of this.
       | Reinforcement learning was mentioned, which resolves all or
       | nearly all of it.
        
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