A Fast and Frugal Finance

Chapter 1

Introduction

Abstract

This first chapter introduces some of the potential of a fast-and-frugal finance and why such a recasting of standard finance is needed. It does this partly by returning to some of the precursors of Gigerenzer's fast-and-frugal approach, but also by pointing to some of the key themes that motivate Gigerenzer's own work with the ABC Group. These include the distinction between risk and uncertainty, the distinction between classical and ecological rationality, and the less-is-more principle.

Keywords

Fast-and-frugal; Risk/uncertain outcomes; Classical/ecological rationality; Less-is-more

A fast-and-frugal finance might at last allow an understanding of how context and cognition shape the bewildering array of evidence ...