Heuristics

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.