Key Ideas

1. Decision-making under uncertainty is influenced by cognitive biases and heuristics. These biases and heuristics can lead to systematic errors and deviations from rationality.

2. People tend to rely on mental shortcuts or heuristics, such as representativeness and availability, to make judgments and decisions under uncertainty. However, these heuristics can sometimes lead to incorrect or biased judgments.

3. The representativeness heuristic is the tendency to judge the likelihood of an event based on how similar it is to a prototype or stereotype. This heuristic can result in the neglect o....
.....

Quiz