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bioRxiv · 10.1101/220277

Decision by sampling implements efficient coding of psychoeconomic functions

Bhui, R.·Gershman, S. J.
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Abstract

The theory of decision by sampling (DbS) proposes that an attributes subjective value is its rank within a sample of attribute values retrieved from memory. This can account for instances of context dependence beyond the reach of classic theories which assume stable preferences. In this paper, we provide a normative justification for DbS that is based on the principle of efficient coding. The efficient representation of information in a noiseless communication channel is characterized by a uniform response distribution, which the rank transformation implements. However, cognitive limitations imply that decision samples are finite, introducing noise. Efficient coding in a noisy channel requires smoothing of the signal, a principle that leads to a new generalization of DbS. This generalization is closely connected to range-frequency theory, and helps descriptively account for a wider set of behavioral observations, such as how context sensitivity varies with the number of available response categories.

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Bhui, R., Gershman, S. J.. 2017-11-16. Decision by sampling implements efficient coding of psychoeconomic functions. https://doi.org/10.1101/220277

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