How do smart people make smart decisions? | Gerd Gigerenzer
TEDxNorrköping
Gerd Gigerenzer is Director at the Max Planck Institute for Human Development and Director of the Harding Center for Risk Literacy in Berlin.
The Ben Franklin Book keeping method or Expected utility theory of listing pros & cons, performing calculations, and making decisions is an old one. Very few people who teach this method of rational choice, make decisions in this fashion. This method works in a world where risks, probabilities and consequences are known. In the world of uncertainty, calculations are not enough, you need heuristics & good intuition.
Decisions under uncertainty is not equal to Decisions under risk, he elaborates on four points- uncertainty, heuristics, simplicity & less is more.
https://www.youtube.com/embed/-Lg7G8TMe_A
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