We all take shortcuts when we are making decisions. And in those shortcuts often lie our mistakes. In this episode find out the difference between the availability and representativeness heuristics, as well as the “Take the Best“, Hindsight, and the Base Rate Neglect (Fallacy) heuristics. Lots of examples of these heuristics at work are included. Let’s face it – we all have lazy minds! Either that or we’re all too busy to try to weed through complicated statistics and probabilities. Heuristics help us make decisions fast. But are they the right ones?
Resources on Heuristics
- Tversky, A.; Kahneman, D. (1973). “Availability: A heuristic for judging frequency and probability”. Cognitive Psychology 5 (2): 207â€“232.
- Tversky, A.; Kahneman, D. (1974). “Judgment under uncertainty: Heuristics and biases”. Science 185 (4157): 1124â€“1131.
- Kahneman, D. (2011) Thinking, Fast and Slow, Farrar, Straus and Giroux, ISBN 978-0374275631. (Reviewed by Freeman Dyson in New York Review of Books, 22 December 2011, pp. 40â€“44.)