Sandor Lehoczky

Heuristics and Biases

Sandor Lehoczky

Leveraging the foundational work of Daniel Kahneman and Amos Tversky, this presentation elucidates how human cognition relies on error-prone heuristics and the conflict between fast, intuitive System 1 thinking and slow, analytical System 2 reasoning. The discussion details empirical evidence of systemic biases such as loss aversion, anchoring, and confirmation bias, demonstrating their profound impact on diverse fields ranging from judicial parole decisions to financial market behavior. Rather than attempting to eliminate these innate flaws, the session advocates for strategic mitigation through meta-cognition, Bayesian updating, and the disciplined practice of overriding automatic responses to improve real-world decision-making outcomes.