Why would decision makers adopt heuristics, priors, or in short “habits” that prevent them from optimally using pertinent information—even when such information is freely-available? One answer, Herbert Simon’s “procedural rationality” regards the question invalid: DMs do not, and in fact cannot, process information in an optimal fashion. For Simon, habits are the primitives, where humans are ready to replace them only when they no longer sustain a pregiven “satisficing” goal. An alternative answer, Daniel Kahneman’s “mental economy” regards the question valid: (...) DMs make decisions based on optimization. Kahneman understands optimization not differently from the standard economist’s “bounded rationality.” This might surprise some researchers given that the early Kahneman, along with Tversky, have uncovered biases that appear to suggest that choices depart greatly from rational choices. However, once we consider cognitive cost as part of the constraints, such biases turn out to be occasional failures of habits that are otherwise optimal on average. They are optimal as they save us the cognitive cost of case-by-case deliberation. While Kahneman’s bounded rationality situates him in the neoclassical economics camp, Simon’s procedural rationality echoes Bourdieu’s “habitus” camp. To abridge the fault line of the two camps, this paper proposes a “two problem areas hypothesis.” Along the neoclassical camp, habits satisfy wellbeing, what this paper calls “substantive satisfaction.” Along the Bourdieu camp, habits satisfy belonging, love, and bonding with one’s environment, what this paper calls “transcendental satisfaction.”. (shrink)

This article is a case study that describes the natural and human history of the gaze heuristic. The gaze heuristic is an interception heuristic that utilizes a single input repeatedly as a task is performed. Its architecture, advantages, and limitations are described in detail. A history of the gaze heuristic is then presented. In natural history, the gaze heuristic is the only known technique used by predators to intercept prey. In human history the gaze heuristic was discovered accidentally by Royal (...) Air Force fighter command just prior to World War II. As it was never discovered by the Luftwaffe, the technique conferred a decisive advantage upon the RAF throughout the war. After the end of the war in America, German technology was combined with the British heuristic to create the Sidewinder AIM9 missile, the most successful autonomous weapon ever built. There are no plans to withdraw it or replace its guiding gaze heuristic. The case study demonstrates that the gaze heuristic is a specific heuristic type that takes a single best input at the best time. Its use is an adaptively rational response to specific, rapidly evolving decision environments that has allowed those animals/humans/machines who use it to survive, prosper, and multiply relative to those who do not. (shrink)