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Heuristics That Help and Heuristics That Hurt: When Shortcuts Backfire

Gerd GigerenzerMIT Sloan Management Review13 min readNovember 4, 2019
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Summary

Mental shortcuts, or heuristics, evolved to help us make fast decisions in uncertain environments, but they can fail spectacularly in modern business contexts. Gigerenzer argues that simple heuristics often outperform complex models when data is scarce, but the key is knowing which heuristic fits which situation. The article provides a decision taxonomy mapping common business scenarios to the most effective (and most dangerous) heuristics.

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