Availability heuristic influences risk perceptions from "summary" of Advances in Behavioral Finance by Richard H. Thaler
The availability heuristic, a mental shortcut that relies on immediate examples that come to mind when evaluating a topic or making a decision, can significantly impact how individuals perceive risk. When people assess the likelihood or severity of a particular risk, they often rely on information that is readily available in their memory. This could be recent news stories, personal experiences, or vivid images that come to mind easily. Because the availability heuristic heavily influences what information individuals consider when evaluating risk, it can lead to biases in their perceptions. For example, if a person has recently heard news reports about a plane crash, the...
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