Heuristics in decision making

Abstract

Heuristics are simple rules of thumbs for problem solving that follow a logic that is quite different from consequential logic. They have long been regarded, as an inferior technique for decision making that is the source of irrational decision behavior. Recently, decision making researchers have demonstrated that some heuristics are highly efficient and can compete with complex decision models in some application domains. This paper explores the different streams of research, summarizes the state of the art decision making model, and discusses its implications for complex decisions in engineering and technology management.