Dual-system theory is perhaps the most popular theory of decision making among laypeople and has gained traction in academic circles. It suggests that people have a powerful intuitive system that usually governs behavior, and another evolutionarily recent rational system that can override it when needed. Problems like "A bat and a ball cost $1.10 together. The bat costs $1.00 more than the ball. How much does the ball cost?" have been thought to test differences in the ability to inhibit intuitions. However, mathematically modeling such problems reveals that they measure both numeracy (the ability to deal with numbers) and the ability to inhibit intuitions. My research shows that it is numeracy, not the ability to inhibit intuitions that is critical to avoiding many traditional decision making biases, but also to constructive real world behaviors like avoiding predatory loans.

In ongoing research, I am examining another mathematical model of dual-system theory to see if it accurately fits real decision making behavior.

Check out my paper on this topic.