Heuristics and Biases and Strategic Decision-Making

Research on judgement under uncertainty shows that people often fail to behave according to normative principles. Reviewing three judgemental heuristics and two choice heuristics that more accurately describe people’s actual behaviour, we comment on the relation between heuristics and biases and on the new framework of dual processes contrasting intuitive and deliberative judgement (cf., Kahneman Thinking, fast and slow. Farrar, Straus and Giroux, New York, 2011). Presenting strategy research focused on heuristics, we highlight the possible role that the dual approach can play in studying strategic decision-making.