Heuristics are mental shortcuts for solving problems in a quick way that delivers a result that is sufficient enough to be useful given time constraints. Investors and financial professionals use a heuristic approach to speed up analysis and investment decisions.
Why do we use heuristics?
The human brain and all its processes—including heuristics—Developed over eons. Since mental shortcuts save both cognitive energy and time, they likely provided an advantage to those who relied on them.
The study of heuristics was developed by renowned psychologists Daniel Kahneman and Amos Tversky. Starting in the 1970s, Kahneman and Tversky identified several different kinds of heuristics, most notably the availability heuristic and the anchoring heuristic.
Since then, researchers have continued their work and identified many different kinds of heuristics, including: Homework, look into the other forms of heuristics
Familiarity heuristic
Fundamental attribution error
Representativeness heuristic
Satisficing
Let’s discuss two of the most notable
What is the availability heuristic?
The availability heuristic describes the mental shortcut in which someone estimates whether something is likely to occur based on how readily examples come to mind. People tend to overestimate the probability of plane crashes, homicides, and shark attacks, for instance, because examples of such events are easily remembered.
What is the anchoring heuristic?
The anchoring heuristic, or anchoring bias, occurs when someone relies more heavily on the first piece of information learned when making a choice, even if it’s not the most relevant. In such cases, anchoring is likely to steer individuals wrong.
UC Moment : Like the Pirates code, Heuristics is more like guidelines than actual rules.
How does this affect the Uncommon Communicator? Seeing this in yourself first but also understanding this in your conversations will help you better understand your counterparts
Also, use this for quick decision making.
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