Leveraging on the representativeness heuristic in the decision making process: A conceptual model

Research output: Chapter in Book/Report/Conference proceedingConference contribution

Abstract

This paper offers a theoretical framework on the contingencies that may shape the use and effectiveness of applying a representativeness heuristic in the decision-making process. Deviating from the dominant approach of regarding heuristics as purely positive versus negative, we focus on how experience affects the outcomes of representativeness and on how intuition, as a hyper-subjective factor playing a synthetic function, and overconfidence, as a behavioural bias, may alter this effect. We unbundle the notion of experience into two main aspects, i.e. experience heterogeneity and experience codification. To offer a nuanced perspective on the conditions that may alter the effectiveness of representativeness, we bring into our conceptual model the role played by two particularly relevant cognitive and behavioural contingencies, respectively intuition and overconfidence. Our conceptualization suggests the existence of a non-linear relationship between experience heterogeneity and codification and the effectiveness of representativeness. Furthermore, we propose that intuition and overconfidence may play moderating roles. Finally, research avenues that may contribute to the ongoing conversation on heuristics in decision-making processes are outlined.
Original languageEnglish
Title of host publicationThe Business of Now: The Future Starts Here. Proceedings of the 20th EURAM Conference
Pages1-30
Number of pages30
Publication statusPublished - 2020
EventEuropean Academy of Management Conference - Dublin, Ireland
Duration: 4 Dec 20206 Dec 2020

Conference

ConferenceEuropean Academy of Management Conference
CityDublin, Ireland
Period4/12/206/12/20

Keywords

  • decision making
  • heuristics
  • intuition
  • overconfidence
  • representativeness

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