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Heuristics (Behavioural Economics)

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Last updated 21 Mar 2021

In general terms, a heuristic is a method or technique that people use to help them make a decision or solve a problem more quickly. We often use the phrase rule of thumb to mean the same thing.

Behavioural Economics - Heuristics

The outcome from using the heuristic may not be perfect or optimised, but is usually “good enough”. The term was developed, along with bounded rationality and satisficing, by the cognitive scientist Herbert Simon.

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