Some Reasons for Distinguishing Between “Non-normative Response” and “Irrational Decision”

Abstract Three concerns that limit the implications of normative decision research were described in this study. First, because there is no unequivocal way to determine whether any particular base rate is appropriate in a particular instance, the significance of the apparent base rate underutilization reported by a number of investigators is unclear. Second, because there are discrepancies between natural language and formal logic, word problems are an uncertain domain within which to gauge human inferential skills. Third, because different people will have different strategies and preferences, no single solution may be correct or optimal for all persons. In light of these limitations, a more functional approach to decision interpretation is discussed.