Heuristics and biases

Introduction We make many decisions in our everyday activity, and sometimes we are more or less logical about them. The decision that we make are based on beliefs concerning the possibility of uncertain events such as the outcome of an election. However what determines these beliefs? How do we measure the probability of an uncertain event? This essay will show that we rely on certain heuristic principle in order to guide us make the best …

…much customers response as did error-free coupons that offered substantial savings" [2] It's easy enough to think of other common examples - supermarkets which use three for the price of two offers, or put up signs saying things like "Two for £1". Next time you see one of these check the price for how much just one costs - it might stem your enthusiasm for the seeming bargain you thought you were being offered