Risk, Uncertainty, and Heuristics

Risk = space of outcomes and probabilities are known. Uncertainty = probabilities not known, and even space of possibilities may not be known. Heuristic rules are contrasted with algorithms like maximization of expected utility. See also Bounded Cognition and Risk, Ambiguity, and Decision (Ellsberg). Here’s a well-known 2007 paper by Gigerenzer et al. Helping Doctors and …

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