Heuristics: a source of judgement fallacies or decision-making aids? (eBook, PDF)
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Research Paper (undergraduate) from the year 2012 in the subject Psychology - Methods, grade: 20, University of St Andrews, course: Behavioural Economics, language: English, abstract: This review essay explores different perspectives and conceptualizations of the study of heuristics, decision-making rules which operate under constrained time and computation (Kahneman, 2011). Two opposed models of heuristics that assume conditions of bounded rationality, the heuristics-and-biases and the fastand- frugal framework, are assessed. Whereas the former evaluates heuristics in terms of logical rationa...
Research Paper (undergraduate) from the year 2012 in the subject Psychology - Methods, grade: 20, University of St Andrews, course: Behavioural Economics, language: English, abstract: This review essay explores different perspectives and conceptualizations of the study of heuristics, decision-making rules which operate under constrained time and computation (Kahneman, 2011). Two opposed models of heuristics that assume conditions of bounded rationality, the heuristics-and-biases and the fastand- frugal framework, are assessed. Whereas the former evaluates heuristics in terms of logical rationality and postulates that humans exhibit predictable fallacies in judgement, the latter focuses on ecological validity, and suggests that humans possess an adaptive toolbox of evolutionary developed decision-making rules which enable better decision making. Finally, alternative explanations and limitations of existing research programs will be explored, concluding with a demand for a rigorous evaluation of experimental designs as well as outlining conditions for a possible synthesis.
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