Behavioral finance biases
Types of Heuristics: Availability, Representativeness & Base-Rate
We make decisions and judgments every day - if we can trust someone, if we should do something (or not), which route to take, how to respond to someone who's upset... the list goes on and on. If we carefully considered and analyzed every possible outcome of these decisions and judgments, we would never do anything else!
Thankfully, our mind makes things easier for us by using efficient thinking strategies known as heuristics. A heuristic is a mental shortcut that helps us make decisions and judgments qui...