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Fuzzy-trace theory explains how people remember, reason, and decide. The theory has been applied to a variety of domains in health and medical decision making, including HIV prevention, cardiovascular disease, surgical risk, genetic risk, and cancer prevention and control. Within these domains, it explains the mysteries of framing effects, ratio bias, frequency-formatting effects, and base-rate neglect, among other classic phenomena. Fuzzy-trace theory has led to the discovery of new, counterintuitive effects too. For example, studies show that adolescents think about risks more logically and quantitatively than mature adults do, which, paradoxically, promotes risk taking—a surprising but predicted effect.

Fuzzy-trace theory has been applied to a variety of populations, including patients and physicians. As a developmental theory, it focuses on changes in memory, reasoning, and decision making with age (differences among children, adolescents, young adults, and the aged). It also specifies when age does not make a difference; for example, adolescents and expert physicians perform equally poorly on base-rate neglect problems involving medical diagnosis (underestimating the effects of prior probabilities of disease on subsequent probabilities once a diagnostic test result is known). Most recently, fuzzy-trace theory has been used to characterize the changes in cognition that accompany disease processes, such as in Alzheimer's and Parkinson's disease, as well as mild cognitive impairment.

The phrase fuzzy trace refers to a distinction between verbatim memory representations that are vivid and gist memory representations that are “fuzzy” (i.e., vague and impressionistic). The distinction between verbatim and gist representations was initially borrowed from psycholinguists, who had amassed substantial evidence for it and had applied it to the representation and retention of verbal materials. However, despite the continued use of the term verbatim in fuzzy-trace theory, these types of representations were extended to describe memories of nonverbal stimuli, including numbers, pictures, graphs, and events.

For example, if a physician tells a patient that she has a 22% chance of having a stroke in the next 3 years, she forms two kinds of memories for that information: (1) a memory of the precise details of what was said (“22% chance of stroke”), which fades rapidly and is subject to interference (e.g., from anxiety), and (2) a memory of the bottom-line meaning, or gist, of what was said (e.g., there is a good chance of having a stroke in the next few years). Multiple gist memories are typically encoded into memory for a single piece of information.

Research on the major paradigms of judgment and decision making and of developmental psychology have shown a common pattern of results with respect to verbatim and gist memories: Individuals encode parallel representations of information along a continuum of precision that is anchored at each end by gist and verbatim representations, or memory traces. Verbatim traces preserve veridical details at the precise end, and gist traces preserve extracted meanings and patterns at the fuzzy end. This first tenet of fuzzy-trace theory is not an assumption, in the usual sense of that term, but, rather, is based on the results of numerous experiments that tested alternative hypotheses regarding memory representations.

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