• https://doi.org/10.1093/oso/9780198871569.003.0003Copy DOI Icon

How Gut Feeling Sometimes Gets It Right

  • Feb 2, 2023
  • Eugene Sadler-Smith
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Abstract

Abstract The two main ideas of this chapter are ‘ecological rationality’ and ‘fast and frugal’ heuristics. Ecological rationality aims to understand how people can be effective decision-makers by using simple heuristics or ‘rules of thumb’ that fit well with the structure of their actual decision-making environment (hence ‘ecological’). It has three principles: first, the metaphor of the mind as an ‘adaptive toolbox’; second, the mind’s ‘evolved capacities’ are raw materials out of which heuristics are constructed; third, better decisions can be taken using less information—‘less can be more’. Fast-and-fugal heuristics are simple, task-specific strategies for making judgements and taking decisions; they are one of the tools of bounded rationality. Gerd Gigerenzer’s work is centre-stage. His view of intuition aligns with an evolutionary view of the mind as an adaptive toolbox. Gigerenzer criticizes ‘Linda-type’ problems because they overlook the cognitive skills that enable human beings to go automatically beyond the information given to navigate an ambiguous and uncertain world. The chapter looks at three types of ‘fast-and-frugals’, the recognition-, social- and reason-based heuristics, and considers their relevance to and applications in business decision-making.

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