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Heuristics in Decision Making

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Judging the probability of an event by its similarity to stereotypes rather than actual statistical information

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Representativeness Heuristic

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Making a decision based on the first piece of information encountered or what comes to mind quickly

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Anchoring Heuristic

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Estimating probabilities based on how easily relevant instances come to mind

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Availability Heuristic

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Choosing an option that partially solves a problem but is fast and easy, rather than the best possible solution

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Satisficing

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Avoiding risk when a positive frame is presented but seeking risks when a negative frame is presented

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Framing Effect

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Believing an event is less likely to happen again if it has already happened multiple times in the immediate past

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Gambler's Fallacy

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Overvaluing items one already owns compared to equivalent items one does not own

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Endowment Effect

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The inclination to change one's answers when evaluating the same information from a different perspective

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Hindsight Bias

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Choosing the default option because changing it requires effort

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Status Quo Bias

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Overestimating the likelihood of one's success and underestimating risks

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Overconfidence Bias

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Sticking with one's initial beliefs even after new information shows the beliefs might be incorrect

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Conservatism Bias

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The tendency to copy the actions of others in an attempt to undertake behavior in a situation of uncertainty or ambiguity

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Herding

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Continuing on a failing course of action due to the significant time, money, or resources already invested

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Sunk Cost Fallacy

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Avoiding situations that are likely to require reparations for past harm

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Omission Bias

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The refusal to plan for, or react to, a disaster which has never happened before

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Normalcy Bias

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