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Modeling and predicting emerging inference-based decisions in complex and ambiguous legal settings
Institution:1. A.J. Palumbo School of Business Administration and John F. Donahue Graduate School of Business, Duquesne University, 600 Forbes Avenue, Pittsburgh, PA 15282-0180, USA;2. Swedish School of Economics and Business Administration, 00100 Helsinki, Finland;1. Department of Economics, Parthenope University, 40 via Medina, 80133 Napoli, Italy;2. Department of Economics, West Virginia University & Center for Free Enterprise, 1601 University Avenue, Morgantown, WV 26506, USA;3. University of Sassari & DiSEA, 34 via Torre Tonda, 07100 Sassari, Italy;1. Department of Environmental Engineering, Korea National University of Transportation, Chungju 380-702, Republic of Korea;2. Department of Civil Engineering, Yeungnam University, Gyeongsan 712-749, Republic of Korea
Abstract:Many decisions people make are based on multitudes of inferences. People have been shown to generate sense quite effortlessly––and compulsively––even in highly opaque situations. Recently, it has been suggested that the making of an inference-based decision may be accompanied by an increase in the coherence of assessments of the individual arguments related to the alternatives at hand. This suggests a constraint satisfaction reasoning process. In two complex and ambiguous law-related emerging decisions, assessments of inferences increasingly spread apart, even if no additional information was provided. Two approaches for studying emerging coherence are developed. First, the structures that emerge as participants progress from stage to stage in the judgment process are captured as principal components through factor analysis. Second, discriminant analysis is employed to test the predictive strength of the emerging cognitive structures vis-à-vis each sequential decision.
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