A Bridge from Monty Hall to the Hot Hand: The Principle of Restricted Choice
Author(s) -
Joshua B. Miller,
Adam Sanjurjo
Publication year - 2019
Publication title -
the journal of economic perspectives
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 9.614
H-Index - 196
eISSN - 1944-7965
pISSN - 0895-3309
DOI - 10.1257/jep.33.3.144
Subject(s) - odds , bridge (graph theory) , mathematical economics , bayes' theorem , neglect , selection (genetic algorithm) , computer science , bayes' rule , subject (documents) , conditional probability , bayes factor , bayesian probability , economics , psychology , artificial intelligence , mathematics , statistics , machine learning , logistic regression , medicine , psychiatry , library science
We show how classic conditional probability puzzles, such as the Monty Hall problem, are intimately related to the recently discovered hot hand selection bias. We explain the connection by way of the principle of restricted choice, an intuitive inferential rule from the card game bridge, which we show is naturally quantified as the updating factor in the odds form of Bayes's rule. We illustrate how, just as the experimental subject fails to use available information to update correctly when choosing a door in the Monty Hall problem, researchers may neglect analogous information when designing experiments, analyzing data, and interpreting results.
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