Heuristics refer to mental shortcuts or rules of thumb that people use to make decisions or solve problems quickly and efficiently. These are strategies derived from experience and often used in situations where full information is not available or processing resources are limited. Heuristics can be helpful in simplifying complex tasks, but they can also lead to biases and errors in judgment.

Here are some real-life examples of heuristics:

1. Availability Heuristic

• Example: After seeing news about plane crashes, people may think flying is more dangerous than driving, even though statistics show the opposite. You can also think about how people may act irrationally (very quickly) when they hear of new information.
• Why valuable: Explains why public fear often doesn’t match actual risk (used in marketing, politics, and public safety).

2. Representativeness Heuristic

• Example: If someone meets a quiet person who enjoys books, they might assume that person is a librarian rather than a salesperson, ignoring the fact that there are far more salespeople than librarians. Unconsciously, our stereotypes bucket people into categories too quickly.
• Why valuable: Shows how people stereotype or make probability errors.

3. Anchoring Heuristic

• Example: When shopping, if the first jacket you see costs $500, a $200 jacket may seem cheap, even if $200 is still expensive. This is a lot more common than you think. It’s better to think about the intrinsic value of products and then look at the price at which the product is offered.
• Why valuable: Explains why pricing strategies, negotiations, and salary expectations work the way they do.

4. Recognition Heuristic

• Example: In an election, if voters recognize one candidate’s name but not the other, they are more likely to choose the familiar name.
• Why valuable: Highlights how familiarity shapes consumer choices, voting, and brand loyalty.

5. Affect Heuristic

• Example: If someone has a positive emotional reaction to “natural” products, they might assume they’re safer and healthier, even without evidence. This is common when people have biases towards certain beliefs. Oftentimes, this can build customer loyalty, which is difficult to achieve.
• Why valuable: Explains how emotions guide decision-making in health, investment, and advertising.

6. Scarcity Heuristic

• Example: Seeing a sign like “Only 2 left in stock!” makes people more likely to buy quickly. Don’t act inpulsively. Instead, step back and think about whether you are acting because there is a scarcity or if you actually need this product and/or service.
• Why valuable: Widely used in sales, marketing, and consumer behavior.

7. Satisficing Heuristic

• Example: Instead of searching for the absolute best apartment, someone picks the first one that meets their needs and budget. Do you know someone who goes to a grocery store to pick up only the items they need and check out, and someone else who goes to a grocery store to browse all the aisles, only to walk out with nothing?
• Why valuable: Saves time and energy in everyday decision-making.

Heuristics are powerful because they save time, but they can also trick us into misjudging what’s actually true. The biggest life benefit comes from learning when to trust your gut vs. when to slow down and check the facts. Here are some practical ways to change the way you think about heuristics in your life:

1. Recognize when probability is hidden behind emotion

• Life application: Before making a fear-driven decision (e.g., avoiding flying, worrying about rare events), pause and ask:
  • “What’s the actual likelihood here?”, “Is this a valid concern?”
• Benefit: You’ll reduce unnecessary stress and make calmer, risk-aware choices.

2. Defuse anchoring in money decisions

• Life application: If you see a product “on sale,” or negotiate a salary, ask:
  • “Am I reacting to the first number I saw, or the real value?”
• Benefit: You’ll save money, negotiate better, and avoid overpaying.

3. Counteract representativeness (stereotyping)

• Life application: When making judgments about people (coworkers, classmates, strangers), remind yourself:
  • “Does this person actually fit the odds, or just the stereotype in my head?”
• Benefit: Better relationships, less bias, and more rational partnership choices.

4. Pause before urgency & scarcity tactics

• Life application: Online store says “Only 1 left in stock!”? Ask:
  • “Do I really need this, or am I being pushed into a rushed choice?”
• Benefit: Less impulsive spending, more control over decisions.

5. Use satisficing intentionally

• Life application: For everyday decisions (e.g., what to eat, what outfit to wear), go with “good enough.” Generally, these decisions have minimal impact on your goals in the long term. Having routines and systems are vital to help you focus on what actually matters.
• Benefit: Saves mental energy for big decisions (career, investments, relationships) where slowing down to check facts pays off.

So here is my practical rule of thumb (heuristics):
Use heuristics for low-stakes, everyday choices (what to eat, small purchases).
Switch to slow, probability-based thinking for high-stakes, long-term choices (finances, career, relationships, health).