In the economics and management literature, heuristics are often conceived of as a source of systematic error, whereas logic and statistics are regarded as the sine qua non of good decision making.

Yet, this view can be incorrect for decisions made under uncertainty, as opposed to risk. Research on fast and frugal heuristics shows that simple heuristics can be successful in complex, uncertain environments and also when and why this is the case. This talk describes the conceptual framework of heuristics as adaptive decision strategies for economic agents and illustrates this with regards to a number of examples from the field such as in price setting, allocating money across investment opportunities, or forecasting customer behavior.


Research Programmes