In accordance with recent research results provided by the neurobiologist Damasio and the psychologist Gigerenzer it is the aim of this paper to point out the limits of solely cognitive explanations and rational approaches to decision-making and problem-solving in the context of business and...

Contrary to the common belief that more information is always better, Gigerenzer et al.\ (1999) showed that simple decision strategies which rely on little information can be quite successful. The success of simple strategies depends both on bets about the structure of the environment and on the...

Poor people often exhibit puzzlingly high sensitivity to low prices of important consumer health goods. This paper proposes decision costs as one explanation: whether a person buys at a price depends on whether she carefully considers the offer, which itself depends on price. A simple model...