Story understanding and counterfactual reasoning

D. Kahneman and A. Tversky (1982), in a seminal study on counterfactual reasoning, claimed empirical support for a simulation heuristic wherein ease of converting unusual conditions determines their selection as causes over normal conditions. Discourse analysis of their stories revealed a confounding of explanation and normality. A connectionist simulation of online comprehension and memory access of alternative conditions without conversion accounted for their data. Normality and explanation were varied independently in 2 experiments. Explanation but not normality affected the rank ordering of counterfactual conditions after reading. Access of alternative conditions in simulation was again the best predictor of empirical findings. Comprehension and memory operate where stories communicate information for decision making such as counterfactual reasoning and hindsight bias.