How do human beings make decisions when, as the evidence indicates, the assumptions of the Bayesian rationality … possess a toolkit of heuristics to make decisions under certainty, risk, subjective uncertainty, and true uncertainty (or … Knightian uncertainty). We outline recent advances in knowledge about the use of heuristics and departures from Bayesian …

rational behaviour (the Heuristics-and-Biases program). Many economists seem unaware that this viewpoint has long been … contested in cognitive psychology. Proponents of an alternative program (the Ecological-Rationality program) argue that … heuristics need not be irrational, particularly when judged relative to characteristics of the environment. We sketch out the …