ABSTRACT
A heuristic is any 'rule of thumb' or simple rule of behavior by which a person solves a problem. A search heuristic specifies what Anna should do in order to become better informed. A good search heuristic needs to trade off the benefits of acquiring more information with these costs. Heuristics, emotions and intuition are one way to do this because they provide simple rules to make decisions. Emotions inevitably influence choice, and so behavioral economics needs a way to take account of that. The efficiency of double-auction markets is arguably the most important lesson so far from behavioral economics. The general picture we get, from many different studies, is that 'Do not lie', 'Do not deceive' and 'Trust others to not lie' are important heuristics in economic decision-making. Heuristics can have a moral and emotive character to them, such as the heuristic 'Do not lie'.
