Decision Processes in Discrimination: Fundamental Misrepresentations of Signal Detection Theory

In the first part of this article, I describe a new approach to studying decision making in discrimination tasks that does not depend on the technical assumptions of signal detection theory (e.g., normality of the encoding distributions). Applying these new distribution-free tests to data from three experiments, I show that base rate and payoff manipulations had substantial effects on the participants' encoding distributions but no effect on their decision rules, which were uniformly unbiased in equal and unequal base rate conditions and in symmetric and asymmetric payoff conditions. In the second part of the article, I show that this seemingly paradoxical result is readily explained by the sequential sampling models of discrimination. I then propose a new, "model-free" test for response bias that seems to more properly identify both the nature and direction of the biases induced by the classical bias manipulations.