Having covered most of the
relevant (in my opinion) aspects of the Personality Dimension from the 4D Model of Behavior, I would like to come back to a very relevant area of behavioral and decision
sciences, namely heuristic judgment.
In an earlier post - A Bird and a Computer in the Brain (Two Systems of Thinking) - I have discussed the two ways in which humans make judgments or in other
words, I have described the Dual-System
model of Judgment. To quickly review
this, people have two ways in which they think.
First, we have the evolutionary
older System 1 (or bird brain) which makes fast judgments based on “rules of
thumb”, which is effortless in terms of metabolic resources needed for its
functioning, is highly intuitive and uses mostly associations.
Second, we have the
evolutionary newer System 2 (or computer brain) which makes slow judgments
based on learned rules, which is effortful and uses large amounts of metabolic
resources (energy); it is computational and analytical. For a more
extensive description check out the post A Bird and a Computer in the Brain(Two Systems of Thinking).
I believe that understanding how
the “bird brain” (system 1) works is highly relevant for understanding human
behavior. I have mentioned earlier that system
1 works on “rules of thumb” which in more scientific terms are called
heuristics. In a series of posts I will describe the most important ones: (1) Representativeness, (2) Availability, (3) Adjustment
and anchoring, (4) Affect heuristic and (5) Halo effect.
Before starting to talk about each
heuristic there are two major aspects that I would like to clarify.
First, what is a heuristic? Somehow a lot of
people talk about heuristics but very few explain what it means.
One of the definitions I have
found on-line is this one: “A heuristic is a mental shortcut that allows people
to solve problems and make judgments quickly and efficiently. These
rule-of-thumb strategies shorten decision-making time and allow people to
function without constantly stopping to think about the next course of action.”
Source
Another definition, this time
from a scientific paper is the following: “A heuristic is a strategy that
ignores part of the information, with the goal of making decisions more
quickly, frugally, and/or accurately than more complex methods.” Gigerenzer and
Gaissmaier (2011).
Taking a look at the two
definitions we see that a heuristic is in essence a way of thinking that is not
extensive and exhaustive. To simplify even more, a heuristic is a simple and
easy way of thinking.
The most known work on heuristic
judgment was done by Amos Tversky and Daniel Kahneman who have conducted the
famous “heuristics and biases” research program. However, they are not the ones
that have brought the topic of fast and simplistic judgment into the attention
of business research. It was Herbert A. Simon who has approached heuristics in
this research on problem solving. Just as a “nice to know” fact, Herbert A.
Simon was the first to challenge the assumption of full rationality of humans
by introducing the (realistic) concept of “bounded rationality”.
Second, is it bad to use heuristic judgment?
Now please answer the following
question: “What word comes first to your
mind when you hear the term “heuristic”?” … I guess it’s “bias(es)”.
A lot of research has focused on
the “down-side” of heuristic judgment, mainly on the fact that heuristic judgment quite often violates the
principles of rationality. The truth, however, is that overall heuristic judgment leads to good conclusions and actions.
In most instances, the outcome of heuristic judgment is not “the
best possible”, but it is “good enough”.
In their paper from 2011 Gigerenzer
and Gaissmaier actually make a case that in many instances heuristic judgment
leads to better results than deliberate effortful reasoning.
If we accept that humans are not meant to be perfect reasoning machines
and that our goals are to survive and reproduce, I guess that “good enough”
outcomes are simply good enough to fulfill these evolutionary macro-goals.
This post is documented from:
Gigerenzer, Gerd, and Wolfgang Gaissmaier (2011),
"Heuristic Decision Making," Annual Review of Psychology, 62,
451–482.
Kahneman, D. (2011). Thinking, fast and slow. London: Allen
Lane.
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