PPL 212 Lecture Notes - Lecture 19: Loss Aversion, Availability Heuristic
Document Summary
Availability heuristic: we judge the frequency of some event by the ease with which instances of the event come to mind, example. In one chapter of a best selling novel, you would expect to nd more words that : end in -ing, have n as the second to last letter, they are equally likely. How availability works: availability substitutes as easier question for a harder one. The substituted question: what is my impression of how easily instances of this category come to mind: this impression is in uenced by many confounding things. An event being salient or attracting attention: hollywood divorces, political sex scandals. An event being dramatic, tragic, or traumatic: plane crashes, car crashes, accidents. Friday, april 7, 2017: getting stopped by red lights when you"re late. If i want you to avoid risks, i"ll describe the decision you"re facing in terms of sure gains.
