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Darwin's Grove

Anchoring, can we model it?

5/28/2013

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We have decided to “warm-up” on Anchoring since a lot of people have either heard of it as well as have experienced it themselves.  During decision making anchoring occurs when an initial piece of information inappropriately influences subsequent decisions.  And understanding  Hierarchical Temporal Models (HTM) takes us a long way toward developing a useful model.

Anchoring gives us a sense that in decision making we are bringing a lot of parallel activity to bear to arrive at a conclusion.  We also suspect that encounters of sequential events must have affect our deliberations.

Does HTM work this way too?  Very much so.

Some key aspects of  how an HTM works:
  • Model Hierarchy. Models are learned by building on previous models and over time into a hierarchy of reusable models.  One can even think of memory and model as one in the same.  While the  potential for “memory” exists in the HTM (and likely our cortex), it is only when patterns have been built that we might really consider these real memories.
  • It’s all predictions.  Likewise memories & models are also simultaneously predictions.   A model seeks opportunities for confirmation every chance it gets.
  • Temporal structure. We often think of memories as static and spatial, like images- say of our cat.  And our power of recognition is exemplary (ie. satisfying the prediction “is that my cat?”).  But what is also baked in and less obvious is that models exist in association with many contexts (other models), and significatly those connected directly in time.  Yes, I am good a recognizing my wife’s voice saying “Hi, I’m home”, but she typcially returns around 5:30p and of course I am expecting (predicting) it.
  • Sparse representation. And finally memories, because they can be built from other models, can also be represented what we call very “sparsely”.  Combine pieces to get entirely new models very compactly, which at the same time explains the power,speed, and efficiency of the human cortex.

To simplify then:
  1. memory = model = prediction (and later also = action!),
  2. memory’s are also always wired in a temporal structure, and
  3. memories can be incredibly reliable and efficient because they are based on sparse representations.

Now we can play out some of the hypothetical ways and HTM helps us understand Anchoring.  In most anchoring experiments the two task are related somehow even though they technically have nothing to do with one another.  For example both may  involve numbers.   And of course, the two tasks are linked in time, one right after the other.  With the first task invoking models related to numbers and forming predictions, perhaps it is not surprising these models remain active and influential through the second estimation task.

And one other aspect comes to light.  And that is the value of making a wrong prediction.  As we said these sparse representations can quickly form complex models, in part by allowing less than perfect predictions to proceed.  In typical anchoring experiments the tasks at hand are not critical to survival for example.  It would be interesting to explore the anchoring bias relative to the importance of a decision and see if it breaks down there.  [Put another way,  “It doesn’t really matter what I put out there as an estimate, but it sure will be interesting to see if these two task were really linked in some way when I hear the answer!”]

Considering these aspects of the HTM then might let us predict how anchoring plays out.  It is likely:

  • The sequential nature of the tasks is essential to impacting the observable effect.
  • Finding further model links should strengthen the effect.  For example invoking the anchoring not just with a number but the same units as well (say currencies) should strengthen the effect.
  • We might hypothesize there is a model serving the notion of “estimation of numbers”, and that creates the expectation of a series of related tasks.  Changing estimation domains, such as predicting a non-numeric answer for the second task likely reduce the anchoring bias.


As HTM models can further inform and clarify how our minds engage these kinds of tasks, we expect them to also spur the development of new tools to help deliver information and inform decision making across a range of applications.
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What's in a name?

2/1/2009

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Last week while traveling on a long flight home from Ukraine, I struck up a conversation with my neighbor on the plane.  At some point after I had described what our company does, its current projects, and what I thought makes us special, I got the question: "Interesting, what's the name of your company?"  I replied, "Darwin's Grove," and my neighbor immediately asked, "What's that mean?"  I realized that despite having what we think is an effective, focused strategy, exciting capabilities, and some good progress this year, we might not be making the connection clear.

So let me explain.  First, I want to say what our name does not mean.  For us, it's not about applying Darwin's theory where it need not be applied.  For example, it's not about jumping from an explanation for the evolution of biological life (involving natural selection, competition, etc.) straight into explanations for social phenomena or economic systems simply because they too are complex.  This does Darwin's work a disservice.

Rather, we think that Darwin's ideas do serve us in our work in behavioral analytics, marketing, finance, and strategy.  In all of those, behavior, our minds, our consciousness, even our spirit (and even spirituality, which inevitably my neighbor and I on the plane touched on--it was an 11-hour flight!), does run on some substrate--our brains.  And the continued furthering of the fundamental understandings of how we can better understand behavior will likely follow at least in part from simply taking more of a stance like that of Charles Darwin himself--that is, asking, "what could a brain be for from an evolutionary perspective, and how did evolution deliver it?"  For example by understanding how the brains stores models and how it recognizes patterns, we are able to develop software that mimics these natural processes in tools that serve our clients in marketing and business strategy.

Let me share a few references which inspired us to create our services. Daniel Dennett's Consciousness Explained and later Darwin's Dangerous Idea: Evolution and the Meanings of Life together seem to provide some of the clearest, most thoughtful, science-based approaches to the big problem of consciousness.  And more recently, Jeff Hawkins and Sandra Blakeslee's On Intelligence walks readers right through the process of how evolution "treats us" to the powers we have to date to discover models in life.  If by chance you've read these authors and see these connections too, feel free to check in!

We certainly don't go as far as these two (and many other great researchers) on the academic or scientific fronts,  but their work significantly informs ours, and applying their work to the problems we look at continues to produce interesting opportunies for our clients.  Darwin's Grove it is.

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