Workbook for Volume 1 – Part II – Section #19: “Embodied Intelligence” and the “Fast & Frugal” Heuristics Program
For new readers: Please read the “Pinned Post” at the top of this Substack’s Home Page, and titled Why Use Public Peer-Review to Write a Book? - “See for Yourself”.
For returning readers and subscribers: This post introduces the Revised Version for Volume 1 – Part II – Section #19: “Embodied Intelligence” and the “Fast & Frugal” Heuristics Program
Summary:
Section #19: “Embodied Intelligence” and the “Fast & Frugal” Heuristics Program – This section discusses the origins of Gerd Gigerenzer’s “Fast & Frugal” Heuristics Program, and how it became a “Repair Program” for both the Logic & Statistics Program and the Heuristics & Bias Program. This “Repair Program” addresses the assumptions behind the “Rational” decision-maker: “Homo economicus”. Gerd Gigerenzer, born in 1947, a research Psychologist, and director emeritus of the Center for Adaptive Behavior and Cognition at the Max Planck Institute for Human Development in Berlin, developed the “Fast & Frugal “Heuristics Program. Reminiscent of Rodolfo Llinás’ work on cognition, Gigerenzer’s looks at decision making as an empirical problem, in contrast to the prescriptive nature of the Logic & Statistics Program and its “Rational” decision-making recommendations. The ”Fast & Frugal” Heuristics Program created a perspective shift in the study of decision-making, including: (i) A declining belief in normative certainty, and (ii) A growing body of knowledge based on simple algorithmic “Processes” that pair adaptive “Heuristics” with matching ecosystems (“Task Environments”). It is their simplicity that makes “Fast & Frugal” heuristics naturally effective, above & beyond other solutions subject to “Speed-Accuracy” as well as “Accuracy-Effort” trade-offs. The ”Fast & Frugal” Heuristics Program demonstrates that making “good [individual, business, & investment] decisions does not require amassing large amounts of information” when decision-makers leverage matching, innate, and common-sense capabilities [“Embodied Intelligence”] against the structure of a specific “Task Environment”.
Developing…
”CTRI by Francois Gadenne” writes a business book in three volumes, published serially on Substack for public peer-review. The book connects the dots of life-enhancing practices for the next generation, free of controlling algorithms, based on the lifetime experience of a retirement age entrepreneur, & continuously updated with insights from reading Wealth, Health, & Statistics research papers on behalf of large companies as the co-founder of CTRI.