Simple Heuristics for a Safer Financial World

In 2011, the Center for Adaptive Behavior and Cognition established collaborations with the Bank of England. In this long-term collaboration program, they investigated how the central concepts of the research group can help design and test simple rules of thumb for regulating and improving today's complex financial system. There are three ongoing subprograms:

1. Developing regulatory heuristics for making the banking system more robust and safe;

2. Appling heuristics such as fast and frugal trees to predict failures of specific banks;

3. Improving risk communication using natural frequency and icon-array formats, so that financial risks can be communicated in ways that are transparent and easier to understand.

Preliminary results of the program have been featured into Andrew Haldane's 2012 speech at the Jackson Hole Conference

The project is beeing continued by the Harding Center for Risk Literacy.

Researchers from the Bank of England 

Andrew Haldane 
Vasileios Madouros
David Aikman
Sujit Kapadia
Emma Murphy

Researchers from ABC 

Gerd Gigerenzer
Konstantinos Katsikopoulos
Mirta Galesic
Amit Kothiyal
Stojan Davidovic