Decision-making heuristics

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Decision-making heuristics

Decision making heuristics

Simon‘s (1983) concept of bounded rationality introduction of the concept of satisfying, which is the process of searching for and evaluating options until one finds one that is good enough. this solution may not be the best/optimal one, but his work emphasized that fully rational decision making Heuristics was at best an aspiration and that the way people actually made up their minds about things was less analytical and was based more on trial and error – which is one definition of a heuristic.

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Other heuristics

 Recency effect heuristic that causes people to put more weight on information they have collected recently and to undervalue things they may have learned in the past.
 Halo and horns heuristic leads people to latch on to one aspect of an interviewee to which they have a strong like or dislike. This one feature then dominates the recruiter‘s whole assessment of the individual.
 Recognition heuristic applies to situations where a person has to decide which of two objects has a higher value on a particular criterion. ‗If one of the two objects is recognized and the other is not, then infer that the recognized object has the higher value‘.
Heuristics-and-biases program of research established the existence of heuristics in judgment but suggested that they were a problem. far from being a distortion of decision making they are both necessary and effective. They reject the rational, subjective, expected utility model as a description of decision making and instead propose the idea of fast and frugal heuristics. The rules are for limiting the search for information and options, and for making choices, that employ a minimum of time, knowledge and computation. They argue that fast and fugal heuristics are bounded rationality in its purest form.