availability heuristic

The Modern Peril of the Availability Heuristic

The availability heuristic teaches us that easily recalled information feels more probable. But in an era of information abundance, this bias has evolved: what we don't see—when we expect to—becomes evidence of impossibility. This essay introduces 'UnAvailability Bias'—the tendency to treat absent information as proof of nonexistence, ignoring institutional, legal, or cognitive constraints that explain the absence. From conspiracy theories surrounding high-profile arrests to medical misdiagnosis of rare conditions, the pattern repeats: silence is interpreted as deception, restraint as conspiracy. When information is unlimited, its absence becomes proof.

The Behavioral Economics of Price-Setting

Prospect theory proposes that when making decisions people use a reference point to frame prospective alternative outcomes as either potential gains or losses; when considering prospective gains, they are risk-averse and prefer certainty, but when considering prospective losses, they are risk-prone and prefer to risk the possibility of larger but uncertain losses. However, when setting prices people make decisions that contradict prospect theory: they are risk prone when cutting prices with the prospect of revenue gains, and risk averse when raising prices that they associate with perceived revenue losses.

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