{"id":1004,"date":"2018-03-22T16:53:58","date_gmt":"2018-03-22T16:53:58","guid":{"rendered":"http:\/\/mitmgmtfaculty.mit.edu\/jsterman\/?page_id=1004"},"modified":"2018-04-05T13:35:01","modified_gmt":"2018-04-05T13:35:01","slug":"whydontwelleducatedadultsunderstand","status":"publish","type":"page","link":"https:\/\/mitmgmtfaculty.mit.edu\/jsterman\/whydontwelleducatedadultsunderstand\/","title":{"rendered":""},"content":{"rendered":"

Why Don’t Well-Educated Adults Understand Accumulation? A Challenge to Researchers, Educators, and Citizens<\/h2>
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M. A. Cronin, C. Gonzalez and J. D. Sterman (2009) Why Don't Well-Educated Adults Understand Accumulation? A Challenge to Researchers, Educators, and Citizens.\u00a0Organizational Behavior and Human Division Processes<\/em>\u00a0108(1): 116-130.<\/p>\n

DOI:\u00a0http:\/\/doi.org\/10.1016\/j.obhdp.2008.03.003<\/p>\n<\/div>\n

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Abstract<\/strong><\/p>\n

Accumulation is a fundamental process in dynamic systems: inventory accumulates production less shipments; the national debt accumulates the federal deficit. Effective decision making in such systems requires an understanding of the relationship between stocks and the flows that alter them. However, highly educated people are often unable to infer the behavior of simple stock-flow systems. Poor performance has been ascribed to complex information displays, lack of contextual knowledge, the cognitive burden of calculation, or the inability to interpret graphs.<\/p>\n

Here, we demonstrate that poor understanding of accumulation, termed stock-flow failure, is more fundamental. In a series of experiments we find that persistent poor performance is not attributable to an inability to interpret graphs, lack of contextual knowledge, motivation, or cognitive capacity. Rather, stock-flow failure is a robust phenomenon that appears to be a function of the mental models constructed and used when encountering a dynamic system. We show that many, including highly educated individuals with strong technical training, use what we term the \u201ccorrelation heuristic\u201d, erroneously assuming that the behavior of a stock matches the pattern of its flows. We discuss the origins of stock-flow failure and implications for management and education.<\/p>\n