Tags » Heuristics

Are New York City cab drivers bad optimizers?

Do NYC cab drivers quit too early when it rains?

Students of judgment and decision making (aka behavioral economics) are familiar with the idea that cab drivers work until they hit an income target and then quit, ignoring opportunities to make more money on especially profitable days, such as when it rains. 85 more words

Behavioral Economics

Test your awareness

Fooled By Your Own Brain

Attention is, by definition, limited. And that’s usually a good thing. If you’re searching for a lost earring on the floor, you want to ignore anything that’s not small and shiny. 49 more words

Behavioral Economics

Why do we tip?

The Economics of Tipping

My dinner companion sounded indignant. “It’s a shame we have to tip the waitress,” she said. “The restaurant owner ought to pay the staff enough to live on.” I imagine that is a common attitude among those steeped in our current cultural climate of envy and dislike of economic success — the anti-capitalist mentality, as Mises put it. 95 more words

Behavioral Economics

Heuristics and evidence-based policy

If there’s one thing to take away from Daniel Kahnemann’s Thinking Fast and Slow it’s that we humans are not overwhelmingly guided by rational thought. In Kahnemann’s language we have a number of heuristics that we (subconsciously) use as shortcuts to deal with complex issues; whilst useful, these heuristics draw on biases that introduce the possibility of errors and inaccuracies that we don’t really recognise[1]. 568 more words

General Interest

10 tips to handle with uncertainty in Medicine

Uncertainty is around every decision in clinical practice. Knowledge, personality and the clinical reasoning process are involved in the election of a correct diagnosis. We enumerate ten tips that we think are useful for a better decision in Medicine.

CLINICAL REASONING Practice

Heuristics and brands

Brands are not gods or life partners, they’re heuristics  (Research-Live.com)

“The supposed “death of loyalty” is an unnecessarily emotional way to define customer behaviour, based on an outdated notion that brands are people, and that creating loyalty requires consumers to have a relationship with that brand..” 108 more words

Biases

Building toilets may not be enough to use them

In India, Latrines Are Truly Lifesavers

The mural on the wall outside of Chandramani Jani’s home is more message than art. It depicts a sari-clad woman relieving herself behind a bush, looking worried as a man advances. 135 more words

Behavioral Economics