Gerd Gigerenzer: What Can Economists Know? 2/5

The video explores decision making under uncertainty, contrasting it with decision making under risk. It critiques traditional rational choice theory and highlights the role of heuristics as effective tools in uncertain environments. Through examples, it demonstrates how heuristics can outperform complex models in certain situations. The video concludes by emphasizing the importance of simplicity and robustness in decision making.

What are the implications of using complex models versus simple heuristics in uncertain environments?

In what situations might trusting a doctor be considered a good heuristic?

How does the concept of 'less can be more' apply to decision-making?

What is the bias-variance tradeoff, and why is it important in decision-making?