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To illustrate, consider a popular heuristic that people often employ, the so-called “recognition heuristic.” The recognition heuristic states that “if one of two objects is recognized and the other is not then we should infer that the recognized object has the higher value.” Such a decision rule may sound overly simplistic but various studies have supported its use and effectiveness.For example, in three studies predicting stock market performance, portfolios of stocks based on recognition (a constructed set of the most recognized stocks) outperformed (on average) managed funds, chance portfolios and stock expert predictions.Well, several experiments have shown that when shoppers are presented with either an extensive or limited amount of potential consumer choices (e.g.

Because of their simplicity, heuristics have long been viewed as inferior to rational thought.

In particular, people tend to assume that it is always a good thing to think long and hard about everything, consciously deliberating different potential outcomes and rationally weighing different pros and cons.

However, an emerging field of research is questioning this traditional view.

Alison Lenton and Marco Francesconi recently published an article in the in which they analyzed over 3,700 human dating decisions across 84 speed-dating events.

The authors found that when the available dates varied more in attributes such as age, height, occupation and educational background, people made fewer dating proposals.