Belief digitization: Do we treat uncertainty as probabilities or as bits?

Humans are often characterized as Bayesian reasoners. Here, we question the core Bayesian assumption that probabilities reflect degrees of belief. Across eight studies, we find that people instead reason in a digital manner, assuming that uncertain information is either true or false when using that information to make further inferences. Participants learned about 2 hypotheses, both consistent with some information but one more plausible than...