Final answer:
Three heuristics in 'The Undoing Project' are anchoring bias, confirmation bias, and availability heuristic.
Step-by-step explanation:
In the book 'The Undoing Project' by Michael Lewis, three heuristics are discussed: anchoring bias, confirmation bias, and availability heuristic.
- Anchoring bias: This occurs when people rely too heavily on the first piece of information they receive and it influences their subsequent judgments. For example, if a person is told that a car is worth $50,000, they might anchor their judgment of the car's value around that initial number, even if it is arbitrary.
- Confirmation bias: This is the tendency to seek out or interpret information in a way that confirms one's existing beliefs. An example of confirmation bias could be someone only paying attention to news sources that align with their political views and disregarding contradictory information.
- Availability heuristic: This refers to the tendency to base judgments on readily available examples or information. For instance, if a person is asked to estimate the likelihood of a plane crash, their judgment might be influenced by recent news stories of plane crashes, even if the actual probability is low.