Surprise, memory, and retrospective judgment making: testing cognitive reconstruction theories of the hindsight bias effect.

Hindsight bias has been shown to be a pervasive and potentially harmful decision-making bias. A review of 4 competing cognitive reconstruction theories of hindsight bias revealed conflicting predictions about the role and effect of expectation or surprise in retrospective judgment formation. Two experiments tested these predictions examining the effects of manipulating the information presented in a text-based scenario and its congruency with the given outcome on surprise, hindsight bias, and recall. The results of Experiment 1 revealed evidence of hindsight bias after exposure to incongruent and ambivalent outcomes but not after exposure to congruent outcomes. Experiment 2 replicated the hindsight bias results and found that the ratio of outcome consistent information recalled was higher than expected in the incongruent and ambivalent conditions but equaled the ratio presented to participants in the congruent condition. The results were interpreted as supporting the general predictions of sense-making models of the hindsight bias. A refined version of this model is discussed.