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To make decisions quickly and economically, our brains rely on cognitive shortcuts known as heuristics. Heuristics allow us to make judgments quickly and often accurately, but they can also lead to fuzzy thinking and poor decisions.
To minimize the potential negative impact of heuristics on your decisions,Β become more aware of them.Β
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Sometimes we make poor comparisons or the compared items are not representative or equal.
We often decide based on rapid comparisons without really thinking about our options. In order to avoid bad decisions, relying on logic and thoughtful examination of the options can somet...
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People who are told that the risk of something bad happening is lower than they expected, tend to adjust their predictions to match the new information. But they ignore the new information when the risk is higher.
Part of this overly optimistic outlook stems from our natural tendency...
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A common occurrence of heuristics in which we use an initial starting point as an anchor that is then adjusted to yield a final estimate or value.
Example: estimating the value of an object based on the common price of similar objects.
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In our daily lives, we do not have the time, knowledge or skills to make the perfect decision/choice every time, and it may be too exhausting and time-consuming to make really big decisions in a perfect way all the time. This makes us use mental shortcuts, or heuristics ...
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