Availability bias leads to distorted decisionmaking from "summary" of Beyond Greed and Fear:Understanding Behavioral Finance and the Psychology of Investing by Hersh Shefrin
Availability bias is a cognitive shortcut that occurs when people make decisions based on information that is readily available to them. This bias can lead to distorted decision-making because it causes individuals to focus on information that is easily accessible, rather than on information that is more relevant or accurate. When people rely on information that is readily available, they may overlook important facts or overlook relevant details that could impact their decisions. One reason why availability bias can lead to distorted decision-making is that people tend to remember vivid or emotionally charged events more easily than mundane or less dramatic events. As a result, individuals may give more weight to information that is emotionally charged or sensational, even if it is not necessarily the most important or accurate information. This can lead to biased decision-making because people may focus on the wrong information or base their decisions on incomp...
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