Hypothetical and real consequences in experimental auctions for insurance against low-probability risks

Laboratory experiments have provided useful information about how people behave in risky situations. In particular, such experiments have allowed for the observation of many deviations from the predictions of expected utility theory. There is some dispute, however, over the effect of the use of real versus hypothetical money in these experiments and over the impact of experience. In this paper we describe auction experiments in which subjects faced a low-probability risk with either hypothetical or real-money consequences and varying amounts of experience. Using hypothetical payoffs resulted in behavior that provides a reasonable qualitative prediction of behavior with real consequences, but that seems to indicate a less diligent altitude toward spending the money as well as less concern about the risk.     

Stochastic interactive processes and the effect of context on perception

The effects of context on perceptual identification responses given without time pressure are well-described by classical models in which contextual and stimulus information exert independent effects. A recent article by Massaro (1989) raises the possibility that interactive models, such as the TRACE model of speech perception, are inherently incompatible with these classical context effects. The present article shows that this incompatibility hypothesis can be rejected. Mathematical analysis and computer simulation methods are used to show that interactive models can exhibit the classical effects of context, if there is variability in the input to the network or if there is intrinsic variability in the network itself. A variety of interactive models which incorporate variability can all produce the classical context effects, at least under some conditions; the conditions are rather general in the case of one of the variants. The findings suggest that interactive models should not be viewed as alternatives to classical accounts, but as hypotheses about the dynamics of information processing that lead to the global asymptotic behavior that the classical models describe.     

Learning the structure of event sequences

How is complex sequential material acquired, processed, and represented when there is no intention to learn? Two experiments exploring a choice reaction time task are reported. Unknown to Ss, successive stimuli followed a sequence derived from a "noisy" finite-state grammar. After considerable practice (60,000 exposures) with Experiment 1, Ss acquired a complex body of procedural knowledge about the sequential structure of the material. Experiment 2 was an attempt to identify limits on Ss ability to encode the temporal context by using more distant contingencies that spanned irrelevant material. Taken together, the results indicate that Ss become increasingly sensitive to the temporal context set by previous elements of the sequence, up to 3 elements. Responses are also affected by priming effects from recent trials. A connectionist model that incorporates sensitivity to the sequential structure and to priming effects is shown to capture key aspects of both acquisition and processing and to account for the interaction between attention and sequence structure reported by Cohen, Ivry, and Keele (1990).     

A computational model of semantic memory impairment: modality specificity and emergent category specificity.

It is demonstrated how a modality-specific semantic memory system can account for category-specific impairments after brain damage. In Experiment 1, the hypothesis that visual and functional knowledge play different roles in the representation of living things and nonliving things is tested and confirmed. A parallel distributed processing model of semantic memory in which knowledge is subdivided by modality into visual and functional components is described. In Experiment 2, the model is lesioned, and it is confirmed that damage to visual semantics primarily impairs knowledge of living things, and damage to functional semantics primarily impairs knowledge of nonliving things. In Experiment 3, it is demonstrated that the model accounts naturally for a finding that had appeared problematic for a modality-specific architecture, namely, impaired retrieval of functional knowledge about living things. Finally, in Experiment 4, it is shown how the model can account for a recent observation of impaired knowledge of living things only when knowledge is probed verbally.     

Visual factors in word perception

An experiment is reported confirming the existence of the “word-letter phenomenon” (WLP): At tachistoscopic exposure durations, each letter of a four-letter word is perceived more accurately than a single letter. Data obtained rule out several artifactual interpretations, including the possibility that perception of letters in a word is facilitated merely by the presence of adjacent contours. The WLP is shown to depend critically on what type of display is used as a preand postexposure field. While a masking field of high-contrast random contours produced a large and reliable WLP, a plain white field eliminated the phenomenon entirely. This pattern of results suggests several ways in which perception at the word level may differ from perception at the letter level.     

Use of the maximal-operant principle to motivate children's intrinsic interest

The present research examined the hypothesis that in contrast to theory and research indicating that tangible reward decreases subsequent interest in enjoyable academic activities, rewards are perceived by adults as effective techniques to maximize long- and short-term subsequent interest for academic tasks of both high and low initial interest level. The results of our first three studies demonstrated that college students and parents view tangible reward as more effective than other less controlling techniques to enhance intrinsic motivation and value rewards more for intrinsically interesting academic behaviors in comparison with others (e.g., prosocial behaviors). Our fourth study supported the hypothesis that adults do not subscribe to the minimal-sufficiency analysis of increasing intrinsic motivation but prefer a maximal-operant principle in which the likelihood of producing long-term interest in academic tasks is assumed to vary positively with the size of a reward. Our fifth and sixth studies investigated illusory correlation as one mechanism that may perpetuate beliefs about the assumed positive relation between tangible reward and intrinsic interest in academic tasks.     

Structural factors in figure perception

In this report, we examine tachistoscopic perception of lines in structured figures. Previous research has shown that perception of lines is facilitated when the lines occur as parts of coherent three-dimensional figures. Experiment 1 demonstrates that it is not necessary for the figure to be three-dimensional to obtain facilitation. Experiments 2 and 3 show that three-dimensionality is not sufficient either. What is important is that the target lines be structurally relevant to the figure. However, structural relevance of a target segment to the figure as perceived with unlimited viewing time is not perfectly correlated with perceptibility under tachistoscopic conditions; it appears that the targets which fall on the external contour of a figure may be facilitated even without a high degree of structural relevance. In view of this, we suggest a model in which perceivers use processing heuristics to direct processing to aspects of the input that are potentially important for determining the structure of the final figure, working primarily from the outside in.     

Perception and masking of wholes and parts

These exerpiments show that the effects of masking on reports of target lines depend on the context in which the target lines appear. Subjects viewed brief presentations of target lines either alone or in drawings of three-dimensional objects, and each target display was preceded and followed by one of several different mask stimuli. There were two main findings: (a) A mask containing a haphazard array of lines interfered more with single lines than it did with lines in objects. (b) A mask containing drawings of the object displays interfered more with lines in objects than did either of two control masks containing relatively flat, less coherent patterns. In a control condition, the object mask interfered slightly less with reports of single lines than either of the control masks did. The discussion considers how the effects obtained here bear on models of the processing of wholistic stimuli and their component parts.     

Context and the allocation of resources in word recognition

Three experiments are reported that investigate the effects of context on the use of limited processing resources in word recognition. On each trial in all of the experiments, the subjects were presented with an incomplete sentence followed by a target display containing a word and two digits. In all cases, accuracy at reporting the word was affected by context, as expected. The effect of context on processing resources was examined by considering the accuracy of reports of the digits in cases in which the word did or did not fit the context. Accuracy of digit report was greater for digits surrounding words in related context, but only when the subjects were required to report the word before reporting the digits. There was no effect of word context on the digit report when subjects had to report the digits first. There was likewise no effect on accuracy of digit report when subjects were required to report only the word or only the digits, even when the cue was presented 250 msec after the target display was replaced by a patterned mask. The results suggest that the effect of context on the resources consumed in word recognition is restricted to aspects of processing that can be delayed until the subject is required to select an overt response, and a simple interpretation of the results may be given in terms of a slight modification of Morton's model of the interaction of stimulus information and context.