Authors: Gerd Gigerenzer

What: Gerd Gigerenzer presents a systematic treatise on practical decision-making informed by the difference between risk and uncertainty.

Why it is important: Gerd Gigerenzer argues that most practical decisions occur under uncertainty, not calculable risk. Since probabilities are rarely known or stable, complex statistical models can mislead both experts and laypeople. Instead, Gigerenzer’s central thesis is that risk literacy enables more dependable judgments than elaborate calculations.

Book Review: Risk Savvy: How to make good decisions