Fast and Frugal Decision Making

Rethinking Behavioral Economics through the Science of Heuristics Preliminary Table of Contents Preface by Gerd Gigerenzer Chapter 1: Heuristic Decision Making An overview of scientific conceptions and definitions Research questions related to different conceptions Two research programs Behavioral economics implications: Behavioral insight and beyond Chapter 2: Rationality of beliefs, actions, and norms Visions of rationality in decision science The relative place of heuristics, logic, and statistics Bounded rationality Behavioral economics implications: Design of Institutions Chapter 3: Ecological rationality As a cognitive program of study As a type of rationality in economic decision making As a normative benchmark Behavioral economics implications: Simple solutions for complex problems Chapter 4: Risk and uncertainty Frank Knight's typology of risk and uncertainty in the market Jimmy Savage's formulation of von Neumann-Morgenstern expected utility Artificial intelligence treatment of the bias-variance dilemma Homo economicus vs. Homo heuristicus Behavioral economics implications: How to minimize the magnitude of financial crises Chapter 5: Process of information Deductive, inductive, and heuristic Creation of knowledge Distinction between the actor and the modeler Preference vs. inference Behavioral economics implications: Improving the health care system Chapter 6: Fast-and-frugal heuristics Mind as an adaptive toolbox Categories and their members Building blocks Rules and manifestations Behavioral economics implications: Risk savvy citizens in a democracy