Heuristics and Cognitive Biases

A heuristic is a mental shortcut that allows people to solve problems and make judgments quickly and efficiently. These rule-of-thumb strategies shorten decision-making time and allow people to function without constantly stopping to think about their next course of action. Heuristics are helpful in many situations, but they can also lead to cognitive biases.

Being aware of how heuristics work as well as the potential biases they introduce might help you make better and more accurate decisions.

First Definitions of Heuristics

It was during the 1950s that the Nobel-prize winning economist and cognitive psychologist Herbert Simon originally introduced the concept of heuristics when he suggested that while people strive to make rational choices, human judgment is subject to cognitive limitations. Purely rational decisions would involve weighing all alternatives such as potential costs against possible benefits.

But people are limited by the amount of time they have to make a choice as well as the amount of information we have at our disposal. Other factors such as overall intelligence and accuracy of perceptions also influence the decision-making process.

During the 1970s, psychologists Amos Tversky and Daniel Kahneman presented their research on cognitive biases. They proposed that these biases influence how people think and the judgments people make.

As a result of these limitations, we are forced to rely on mental shortcuts to help us make sense of the world. Simon's research demonstrated that humans were limited in their ability to make rational decisions, but it was Tversky and Kahneman's work that introduced the study of heuristics and the specific ways of thinking that people rely on to simplify the decision-making process.

 Why We Use Heuristics

Heuristics play important roles in both problem-solving and decision-making, as we often turn to these mental shortcuts when we need a quick solution.

Here are a few different theories from psychologists about why we rely on heuristics.

• Attribute substitution: People substitute simpler but related questions in place of more complex and difficult questions.
• Effort reduction: People utilize heuristics as a type of cognitive laziness to reduce the mental effort required to make choices and decisions.
• Fast and frugal: People use heuristics because they can be fast and correct in certain contexts. Some theories argue that heuristics are actually more accurate than they are biased.

You probably make hundreds or even thousands of decisions every day. What should you have for breakfast? What should you wear today? Should you drive or take the bus? Fortunately, heuristics allow you to make such decisions with relative ease without a great deal of agonizing.

For example, when trying to decide if you should drive or ride the bus to work, you might suddenly remember that there is road construction along the bus route. You realize that this might slow the bus and cause you to be late for work. So you leave earlier and drive to work on an alternate route. Heuristics allow you to think through the possible outcomes quickly and arrive at a solution.

Types of Heuristics

There are many different kinds of heuristics, including the availability heuristic, the representativeness heuristic, and the affect heuristic. While each type plays a role in decision-making, they occur during different contexts. Understanding the types can help you better understand which one you are using and when.

Availability

The availability heuristic involves making decisions based upon how easy it is to bring something to mind. When you are trying to make a decision, you might quickly remember a number of relevant examples. Since these are more readily available in your memory, you will likely judge these outcomes as being more common or frequently occurring.

For example, if you are thinking of flying and suddenly think of a number of recent airline accidents, you might feel like air travel is too dangerous and decide to travel by car instead. Because those examples of air disasters came to mind so easily, the availability heuristic leads you to think that plane crashes are more common than they really are.

Representativeness

The representativeness heuristic involves making a decision by comparing the present situation to the most representative mental prototype. When you are trying to decide if someone is trustworthy, you might compare aspects of the individual to other mental examples you hold. A sweet older woman might remind you of your grandmother, so you might immediately assume that she is kind, gentle, and trustworthy.

Affect

The affect heuristic involves making choices that are influenced by the emotions that an individual is experiencing at that moment. For example, research has shown that people are more likely to see decisions as having benefits and lower risks when they are in a positive mood. Negative emotions, on the other hand, lead people to focus on the potential downsides of a decision rather than the possible benefits.

Anchoring

The anchoring bias involves the tendency to be overly influenced by the first bit of information we hear or learn. This can make it more difficult to consider other factors and lead to poor choices. For example, anchoring bias can influence how much you are willing to pay for something, causing you to jump at the first offer without shopping around for a better deal.

How Heuristics Can Lead to Bias

While heuristics can help us solve problems and speed up our decision-making process, they can introduce errors. As you saw in the examples above, heuristics can lead to inaccurate judgments about how commonly things occur and about how representative certain things may be.

Heuristics can also contribute to things such as stereotypes and prejudice. Because people use mental shortcuts to classify and categorize people, they often overlook more relevant information and create stereotyped categorizations that are not in tune with reality.