Humans must often make decisions in temporally autoregressive
environments (e.g., weather, stock market). Here, current
states of the environment regress on their previous states
(either across consecutive timesteps or from several timesteps
back in a patterned fashion). The current work investigates
people’s abilities to utilize previous states of autoregressive
sequences as cues to its current state. In Experiment 1 we determine
whether utilization of autoregressions reduces as the
temporal distance of the predictive timestep increases; and in
Experiment 2 we explore whether participants’ utilization of
previous timesteps in predictions compete such that they reduce
utilization of one timestep when increasing utilization
of another timestep. We also fit data from both experiments
with a trial-by-trial decision model. Overall, we find that participants
significantly reduced utilization of a cue with its increased
temporal distance. However, we obtained less conclusive
results on competition among timestep cues. These results
can explain people’s predictions in sequential decision tasks
(e.g., their tendencies to perceive clumpiness in random environments).