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Psychology into economics: fast and frugal heuristics

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  • Schilirò, Daniele

Abstract

The present essay focuses on the fast and frugal heuristics program set forth by Gerd Gigerenzer and his fellows. In particular it examines the contribution of Gigerenzer and Goldstein (1996) ‘Reasoning the Fast and Frugal Way: Models of Bounded Rationality’. This essay, following the theoretical propositions and the empirical evidence of Gigerenzer and Goldstein, points out that simple cognitive mechanisms such as fast and frugal heuristics can be capable of successful performance in real world, without the need of satisfying the classical norms of rational inference.

Suggested Citation

  • Schilirò, Daniele, 2015. "Psychology into economics: fast and frugal heuristics," MPRA Paper 78162, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:78162
    as

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    References listed on IDEAS

    as
    1. Daniele Schilirò, 2012. "Bounded Rationality And Perfect Rationality: Psychology Into Economics," Theoretical and Practical Research in the Economic Fields, ASERS Publishing, vol. 3(2), pages 99-108.
    2. Juslin, Peter, 1994. "The Overconfidence Phenomenon as a Consequence of Informal Experimenter-Guided Selection of Almanac Items," Organizational Behavior and Human Decision Processes, Elsevier, vol. 57(2), pages 226-246, February.
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    More about this item

    Keywords

    behavioral economics; heuristics; biases; fast and frugal heuristics;
    All these keywords.

    JEL classification:

    • D0 - Microeconomics - - General
    • D10 - Microeconomics - - Household Behavior - - - General
    • D80 - Microeconomics - - Information, Knowledge, and Uncertainty - - - General

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