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Heuristics and Bias in Decision Making: Analysis of Human Mind's Capability

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Added on  2021-02-20

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This essay analyzes the impact of heuristics and bias on decision making in complex problems and the capability of the human mind. It discusses the availability and representative heuristics, bounded rationality, and the limitations of human rationality. The essay concludes that a more rational approach is required to fully explore the capabilities of the human mind.

Heuristics and Bias in Decision Making: Analysis of Human Mind's Capability

   Added on 2021-02-20

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The capacity of the humanmind for formulating andsolving complex problems isvery small compared with thesize of the problems whosesolution is required
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TABLE OF CONTENTINTRODUCTION...........................................................................................................................1Heuristics and bias involved in decision making ............................................................................1Availability Heuristics ................................................................................................................1Representative Heuristics ............................................................................................................2Bounded Rationality ...................................................................................................................2CONCLUSION ...............................................................................................................................3REFERENCES................................................................................................................................4
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INTRODUCTIONHeuristics is defined as the technique or the methodology which allows individuals tomake quick judgements and to take quick decisions especially in complex circumstances. Theheuristic approach helps in making decisions quickly and in desired framework of time but itmay not deliver optimal solutions. The efficacy of decision making processes is also influencedby various psychological biases (Pogarsky, Roche and Pickett, 2017). The biases can beconscious as well as unconscious which disrupt the objective contemplation of decisionsaffecting their accuracy and judgmental process. The essay will provide an analysis of variousconcepts which affects the decision making in the complex problems and capability of humanmind in context of rationality statement given by Simon. Heuristics and bias involved in decision making Bias is known to be predetermined psychological notions and assumptions which affectsthe perspective and behaviour of individual. Thus whether learned or innate biases leads to closeminded or unfair decisions. With the bias individuals tends to develop conclusions on the basisof prejudice and opinions without actually following any rational procedure. The heuristicsshorten the time to take decisions as they provide strong ground rules for the clinical judgmentsbut at the same time they also produces cognitive biases. The decisions making processes whichrely on using heuristics are also considered as cognitive laziness. With the help of heuristics mental efforts are also reduced in taking decisions thus thereare high possibilities of biasing in solving problem. With the complex problems it is not possiblefor the brain to analyse each and every single aspect of the issue (Grasas and et.al., 2017). Thusspecific mental strategies or heuristics allows to minimise these efforts to provide specificsolutions to the problems on the basis of specific strategies. However use of existing heuristicsfor solving problems can develop prejudices and stereotypes and can prohibit individuals tosearch for alternative solutions for solving a complex problems. Heuristics are also applied asquick remedies for complex decisions as they can act as helpful tool in weighing alternatives andconducting analysis. Availability Heuristics One of the most common approach to make decisions is on the basis of facts that howeasily the problem or create something in our mind. Such types of strategy or heuristic is knownas availability heuristics. When people try to make any decisions or solve problem then they1
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