Confidence ratings do not distinguish imagination from reality.

Perceptual reality monitoring refers to the ability to distinguish internally triggered imagination from externally triggered reality. Such monitoring can take place at perceptual or cognitive levels-for example, in lucid dreaming, perceptual experience feels real but is accompanied by a cognitive insight that it is not real. We recently developed a paradigm to reveal perceptual reality monitoring errors during wakefulness in the general population, showing that imagined signals can be erroneously attributed to perception during a perceptual detection task. In the current study, we set out to investigate whether people have insight into perceptual reality monitoring errors by additionally measuring perceptual confidence. We used hierarchical Bayesian modeling of confidence criteria to characterize metacognitive insight into the effects of imagery on detection. Over two experiments, we found that confidence criteria moved in tandem with the decision criterion shift, indicating a failure of reality monitoring not only at a perceptual but also at a metacognitive level. These results further show that such failures have a perceptual rather than a decisional origin. Interestingly, offline queries at the end of the experiment revealed global, task-level insight, which was uncorrelated with local, trial-level insight as measured with confidence ratings. Taken together, our results demonstrate that confidence ratings do not distinguish imagination from reality during perceptual detection. Future research should further explore the different cognitive dimensions of insight into reality judgments and how they are related.