Money & Business
Making decisions
...physical world and the behaviour of others (Kelley, 1967). Heuristics are mental shortcuts or ‘rules of thumb’. For example, the British Army saying ‘If it moves salute it, if it doesn't paint it white’ is an example of a heuristic. We use heuristics and take shortcuts to reduce the complexity, cost and time taken to make decisions. While the more pessimistic...