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, by Gerd Gigerenzer

Download , by Gerd Gigerenzer

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Product details

File Size: 942 KB

Print Length: 290 pages

Page Numbers Source ISBN: 0143113763

Publisher: Penguin Books; 1 edition (July 5, 2007)

Publication Date: July 5, 2007

Language: English

ASIN: B000TO0T8U

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Amazon Best Sellers Rank:

#288,126 Paid in Kindle Store (See Top 100 Paid in Kindle Store)

I breathed a sigh of relief as I read this book and it confirmed how I operate and think. Not everyone puts rationality and common logic on a pedestal when it comes to solving problems or dealing with the here and now.This book:- Explains in layman terms how gut feelings work with reference to the findings of scientific research- Confirms intuition as a proven legitimate problem solving tool for men and women- Demonstrates how we are hard-wired to resolve problems with simple rules of thumb that have evolved and been shaped by our environment- Explains how these simple rules of thumb help us grapple with an unpredictable future and how they prevail over rational deliberation and hindsightThis is an easy read in short chapters and when I finish this book I'm very inclined to buy other books by this author.

One of the major unexplained gaps in the science of economics is the assumption that consumers are rational. Based on the assumption of rationality economics papers are littered with differential equations and other forbidding mathematics which describe how consumers make choices. But in the real world consumers don't solve differential equations in order to decide whether or not to buy a cup of coffee. This is a sticky problem. The standard rebuttal is to point out that the flight of a baseball can also be described with all sorts of forbidding differential equations. The fact that baseball players don't solve the differential equations which describe the flight of the ball doesn't mean that they can't catch! Baseball players must subconsciously approximate this mathematical process.Gigerenzer points out that the standard rebuttal is wrong. A baseball player couldn't hope to gather and process all the information about the flight of a ball in real time, even approximately. Instead they use what he calls the gaze heuristic: 'fix your eyes on the ball and adjust your running speed so that your angle of vision to the ball remains constant.' The interesting thing about the gaze heuristic is that it ignores virtually all of the information about the ball's flight and focuses on just one piece of information: your angle of vision relative to the ball. But that single piece of information is enough to reliably let people catch a ball.That in a nutshell is the concept of bounded rationality. Once you factor in the cost of gathering and processing information it becomes extremely irrational to make decisions by solving differential equations. Heuristics (AKA rules of thumb) are the way to go. They give you a lot more bang for your information-processing buck. Here is the truly radical part of Gigerenzer's book. If you were to simply claim that heuristics allow people to make decisions that are almost as good on vastly less information then I doubt many modern social scientists would disagree. But in fact Gigerenzer shows that heuristics can outperform the information-greedy favorites of the social sciences like multiple regression analysis and neural networks with back propagation.Another really nice thing about this book is that Gigerenzer is a very good writer with a very light touch. You will not find the heavy and ponderous writing that you normally expect from scholars. This book is an easy and fast read that belongs on the shelf of everyone interested in politics and the social sciences. You may also want to consider The Bounds of Reason: Game Theory and the Unification of the Behavioral Sciences (you can easily and profitably skip over the math).

-I gave this five enjoyable stars because several months after reading it, I often use the book's main points (unlike many other facile but forgettable books which are read, agreed with, and then used little).-As an example, I found the Fast and Frugal Decision Tree interesting and tremendously helpful in practical decisions (including ones relating to my Buddhist spiritual practice), and I often develop my own decision trees while approaching similar problem sets. The Decision Trees help me identify the main issues, discern the consequences, and nail down a good imperfect decision. I enjoyed his amusing discussions on Satisficers (those willing to accept a good decision and move on) and Maximizers (those wanting perfection, even at the cost of detailed analysis), and when to choose one method over the other (and when you don't). These concepts are neither unique nor original to the author but I found he explained them thoroughly and meaningfully.-Unlike other reviewers, I rarely found the book bogging down, and when I did I used the satisficer principle and just breezed through those sections. I found his writing and persuasive style elegant, clear, and sensible. The author appeared to dispense with the abstractions, which was just right for this book. Incidentally, I have subsequently found his name arising in descriptive articles on cognitive topics (his credentials are pretty solid. Neat.-So ... I look forward to reading some of his other works.

-Are we really that flawed that in order to figure out which pizza to order you need to do multiple regression analysis?Or do we survive (and have for millennia) because we are part of the order of things, and as such, have innately within us, the correct mechanisms to figure out things.Or, are these mechanisms outdated in Modern society?Gigerenzer makes a very compelling argument for, not against, Heuristics.We are not flawed beyond repair in our thinking process.But maybe some that espouse 'biases' are.We do not have (or need) a computer-like brain, or worse, have a moral dictate to be an efficient being (even when such an attempt actually makes us less efficient!)Highly recommended.___This is an identical review to Simple Heuristics That Make Us Smart (Evolution and Cognition Series) (Hardcover)I read both, either one or both work, up to you.

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