Judgment under Uncertainty: Heuristics and Biases

Judgment under Uncertainty: Heuristics and Biases

Amos Tversky and Daniel Kahneman’s 1974 paper ‘Judgement Under Uncertainty: Heuristics and Biases’ is a landmark in the history of psychology. The paper investigates human decision-making, specifically what human brains tend to do when we are forced to deal with uncertainty or complexity

Based on experiments carried out with volunteers, Tversky and Kahneman discovered that humans make predictable errors of judgement when forced to deal with ambiguous evidence or make challenging decisions. These errors stem from ‘heuristics’ and ‘biases’ – mental shortcuts and assumptions that allow us to make swift, automatic decisions, often usefully and correctly, but occasionally to our detriment.

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The Theory of Money and Credit

The Theory of Money and Credit