bounded rationality

heuristics

intuitive mental operations, performed quickly and automatically, that provide efficient answers to common problems of judgement

availability heuristic

the process whereby judgements of frequency or probability are based on how readily pertinent instances come to mind

representativeness heuristic

the process whereby judgements of likelihood are based on assessments of similarity between individuals and group prototypes, or between cause and effect

Affect heuristic 

Judging something’s merit, value, or risk, based on the emotional reaction it generates. 

Anchoring Heuristics

when an estimation of a value is influenced by an accidental or irrelevant starting point

fluency

the feeling of ease (or difficulty) associated with processing information

base rate information

information about the relative frequency of events or members of different categories in a population

illusory correlation 

the belief that two variables are correlated when in fact they are not 

regression effect

the statistical tendency, when two variables are imperfectly correlated, for extreme values of one of them to be associated with less extreme values of the other

regression fallacy

the failure to recognize the influence of the regression effect and to instead offer a casual theory for what is really a simple statistical regularity