Heuristics vs Biases: Why Your Decisions Go Wrong

Buy me a coffee: buymeacoffee.com/r3ciprocity Listen to my new podcasts: https://podcasts.apple.com/nz/podcast... I discuss the difference between a heuristic and a bias in decision-making. A heuristic is a cognitive shortcut that allows you to make faster rough decisions that are often “good enough.” A bias in decision-making occurs when the choices you make systematically differs from the optimal choice. A heuristic can result in a bias in decision-making if the heuristic is inaccurate or poorly matches the environment. A heuristic is likely to be in accurate when you have a poor mental model, or an involved in such a way that you poorly understood the environment. The most likely reason why heuristics are inaccurate is because the environment changed, and you’re trying to apply an old heuristic to a new environment. This can occur when technologies change, or consumer preferences change. Heuristics can be quite accurate if you calibrate be heuristic from time to time. The bias often results because we do not calibrate or update our mental models on a regular basis. If you want to increase the accuracy of your heuristics in decision-making, keep an open mind, and continuously test any assumptions that you hold. Essentially the key way to improve decision making heuristics and to remove any decision-making biases is it to continuously learn over time. Check out: What Is A Heuristic In Psychology? - Nerd-Out Wednesdays    • Heuristics in Psychology: How Mental Short...   Anchoring And Adjustment Heuristic: Why Is Anchoring Important To Managers? - Nerd-out Wednesdays    • Anchoring Bias Explained for Managers and ...   What Is the Availability Bias?: The Availability Heuristic In Everyday Life - Nerd-Out Wednesdays    • Availability Bias Explained: Why Recent Ev...   What Is A Confirmation Bias? Confirmation Biases - Nerd-Out Wednesday    • Confirmation Bias Explained: Why Smart Peo...   How To Write A Research Question - Nerd-Out Wednesdays    • How to Write a Research Question for a Dis...   ************* David Maslach is a research professor of entrepreneurship, innovation, and business strategy, I discuss topics, such as behavioral science, strategy, innovation, and entrepreneurship, and apply these to my new peer proofreading and editing platform. Topics include the sharing economy, altruism, investing in technology, and bounded rationality. My favorite videos pertain to incentives, goal setting, and learning from failure to drive behaviors such as weight loss, stopping telemarketers, creating novel technologies, and creating new movements. r3ciprocity.com: Peer proofreading and editing platform A new platform where you can earn credits by editing other people's documents. Use these credits to have your own work edited. If you do a good enough job, you can convert these credits to money. The goal of the platform is to get people to 'pay it forward' and help other people out by creating incentives for people to give back. Check out https://www.r3ciprocity.com Please subscribe to the Youtube channel:    / @r3ciprocityteam