Fig. 4.

The utility approach to signal detection theory indicates a relationship between bias and sensitivity that functions to maximize the utility of perceptual decisions. Mathematical modeling shows that a perceiver’s sensitivity and bias should be inversely related. A “line of optimal response” (LOR; dashed line) is defined by the bias that yields maximum utility for any given level of sensitivity, for constant base rate and payoff values. Curvature of the LOR indicates that the decrease in utility that results from reduced sensitivity can be mitigated by increased magnitude of bias (here, more conservative-going). Parameter values provided in Supplemental Material.