Bounded rationality
Falk Lieder, Ming Hsu, and Tom Griffiths showed that the ‘rational’ solution to this computational constraint is to over-sample extreme outcomes. That is, you should apply something like the availability heuristic by calling those more extreme (easily accessible) outcomes to mind. The result is a biased estimate, but one that is optimal given the... See more
Jason Collins • We don’t have a hundred biases, we have the wrong model - Works in Progress
“the three bounds”: bounded rationality, bounded willpower, and bounded self-interest.
Richard H. Thaler • Misbehaving: The Making of Behavioral Economics
To solve problems, our brains have evolved to employ cognitive heuristics—rough shortcuts that get the right answer often, but not all the time.