Belief & ConfidenceBias #99

Base Rate Fallacy

We ignore general probabilities in favour of specific details.

The tendency to ignore background statistical probabilities in favour of specific vivid or anecdotal information about a single case.

Why it matters: Classic Kahneman and Tversky demonstration with the engineer-lawyer problem.

Watch for

Letting a compelling story override statistical facts.

Try this

Start with base rates and adjust only if specific evidence is strong and reliable.

Real-world example

Assuming a person who fits the description of a terrorist is likely a terrorist even though the base rate of terrorism is extremely low.

Key researchers

Daniel Kahneman, Amos Tversky

First described in 1973

Psychological mechanism

Representativeness heuristic override. Specific individuating information is vivid and story-like engaging System 1 thinking. Base rates are abstract statistical abstractions that require System 2 effort to integrate.

Seminal research

Amos Tversky and Daniel Kahneman (1973), "On the psychology of prediction."