The document discusses the representativeness heuristic, which is a mental shortcut used in decision making where people judge the probability of something based on how much it resembles or represents a prototype. It can lead to biases by overlooking important details and making incorrect judgments based on stereotypes. However, it also allows for quick decision making and identifying patterns. The document recommends seeking diverse perspectives, using data, and taking time to reflect to mitigate the effects of this heuristic.

1. Behavioral Economics (ECO-220)
Title: Representativeness Heuristic
Presenters Names:
Md. Khalid Hasan 2020-3-30-005
Nusrat Jahan 2020-1-30-074
Sadaf Hossain Khan 2019-3-30-008

2. What is Representativeness Heuristic?
Mental shortcut Decision making
Stereotype

3. Why it's important to study this heuristic?
Reduce the impact of
cognitive biases
promote more accurate
decision-making
Better Judgement

4. Prototype refers to Mental Image Stereotypes refers to Mental Shortcut
Prototype & Stereotype

6. Pros & Cons
Pros Cons
1. Allows for quick decision-making
3. Can identify patterns and similarities
2. Simplifies complex information
4. Helps to make decisions more
…… efficiently
1. Can lead to stereotyping and biases
3. May not be applicable in all situations
2. Can overlook important information
4. Can lead to errors and incorrect …… ……
…… judgments

7. How to Mitigate the Effects of the Representativeness Heuristic?
1. Increase awareness of your own biases 2. Seek out diverse perspectives
3. Use data and statistics 4. Take time to reflect

8. 1 2 3
Quick Recap
We categorize a new situation based
on preconceived notions
We use stereotypes or mental
prototypes
We make our decision
"We hope this presentation has been informative and helpful in enhancing your
decision-making abilities. Thank you for your attention."