ISSN 2167-0439
International Journal of Management and Business Studies ISSN 2167-0439 Vol. 6 (2), pp. 242-246, February, 2016. © International Scholars Journals
Review
Use of heuristics in decision making and the biases resulting from these heuristics
Faten Mohammed1 and Abdelaziz H. Massi 2*
1Department of Management, Riphah International University, Islamabad.
2Department of Public Administration, Gomal University Dera Ismail Khan Khyber Pakhtunkhwa, Pakistan.
E-mail: [email protected]
Accepted 14 January, 2016
Abstract
The use of heuristics in decision making and the biases resulting from these heuristics has been a subject of debate among researchers long ago. Rational decision making has very much importance while studying heuristics. But sometimes due to cognitive and environmental factors, rationality of human beings becomes bounded and they rely on guess and hunches, thereby paving ways for biases to occur in decision making. The aim of this study is to examine the role of heuristics in understanding the dynamics of modern decision making. Critical analyses and argumentation was used throughout the study to analyze the data and to draw inferences. Critique of the research on heuristics in decision making was discussed. It was found that a better understanding of heuristics can improve modern decision making.
Key words: Heuristics, decision making, rationality, bounded rationality, cognitive and environmental factors.