Some systematic departures from rational choice

Systematic departures from rational choice can take many forms. Examples of these may include cognitive biases, heuristics, irrational fears, and “magical thinking.” Cognitive biases are biases in thinking that lead to systematic distortion of information, such as the information presented in decision-making. Heuristics are simplified methods or mental shortcuts used to make decisions that may not always be the most rational choices or even accurate. Fear, whether real or perceived, can lead to irrational decision-making that may not be based on rational choice. Finally, “magical thinking” is a form of irrational thinking that leads to decisions and beliefs that are not based on reality.