Example of Affect Heuristic
- An investor feels excited about a trendy new company and judges it as both a low-risk and high-reward investment, ignoring financial analysis suggesting otherwise.
Positive emotional response to the brand substituted for rigorous investment analysis. - Someone rejects a medical treatment that statistics show is safe and effective because the treatment "feels wrong" or they've read scary stories about it.
Negative affect created a perception of high risk and low benefit contrary to evidence.
Note
This is a common biasDeveloped by Paul Slovic and colleagues, the affect heuristic integrates emotion into the heuristics and biases framework pioneered by Kahneman and Tversky.
