Project Details


Psychology research has shown that everyday decisions can be affected by a variety of biases, most of which decision-makers are not even aware of. Whereas some biases have only mild consequences for the decision-maker, others lead to behaviors with potentially disastrous consequences, both for the decision-makers and society at large. The tendency to underweight low probability or rare events falls into this important latter category.
Underweighting of rare events is a robust tendency that has been observed both in social science behavioral laboratories and natural settings. This bias typically occurs when people make repeated decisions that have uncertain future outcomes, and the only information they have on which to base their decisions is the outcomes of their previous choices.

Layman's description

Effective start/end date01/10/201631/05/2017