Outcome & SelfBias #137

Neglect of Prior Probability

We ignore prior probabilities when updating beliefs.

The tendency to update beliefs or probabilities without factoring in the original baseline probability of an occurrence.

Why it matters: Related to the base rate fallacy. A core concept in Bayesian reasoning.

Watch for

Updating beliefs based on new evidence without considering base rates.

Try this

Always start with the prior probability before incorporating new evidence using Bayes rule.

Real-world example

Hearing a witness identify a blue car in a hit-and-run and concluding it is likely blue without considering that most cars in the area are silver.

Key researchers

Daniel Kahneman, Amos Tversky

First described in 1973

Psychological mechanism

Representativeness heuristic override. New evidence that is vivid and story-like dominates judgment while abstract prior probabilities are underweighted or ignored.

Seminal research

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