Sample frameDay 066·Decisions · Bias

Good morning. The example that arrives first in your head is the best-told story you know, not the most likely thing to happen next.

Decisions.

Availability Bias

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The question

Think about the risk your team has spent the most energy guarding against this quarter: is it genuinely the most likely thing to damage you, or simply the most recent thing to damage somebody you know? If the answer will not come without going and counting, you already have it — the quarter has been spent defending against a story you can retell rather than a number you have checked.

The idea

In 1978 the psychologists Sarah Lichtenstein, Paul Slovic, Baruch Fischhoff and colleagues, working in Oregon, published 'Judged Frequency of Lethal Events' in the Journal of Experimental Psychology: Human Learning and Memory. They asked people to estimate how many Americans die each year from around forty different causes, then set the answers against the actual figures. The errors were not random. Dramatic, heavily reported deaths — tornadoes, floods, homicide, botulism — were wildly overestimated, while the quiet common killers such as stroke, asthma and diabetes were underestimated. The estimates tracked press coverage rather than mortality. That is availability, the heuristic Amos Tversky and Daniel Kahneman had named five years earlier: the mind answers 'how likely is this?' by testing how easily an example comes to mind, and ease of recall runs on vividness, recency and repetition, none of which is frequency. Your business version is the deal you lost last month, the hire who blew up, the competitor who just raised. Recency is not probability, and memory is not a dataset.

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