Overreaction to Fearsome Risks
Fearsome risks are those that stimulate strong emotional responses. Such risks, which usually involve high consequences, tend to have low probabilities, since life today is no longer nasty, brutish and short. In the face of a low-probability fearsome risk, people often exaggerate the benefits of preventive, risk-reducing, or ameliorative measures. In both personal life and politics, the result is damaging overreactions to risks. We offer evidence for the phenomenon of probability neglect, failing to distinguish between high and low-probability risks. Action bias is a likely result.
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- James T. Hamilton & W. Kip Viscusi, 1999. "Calculating Risks?: The Spatial and Political Dimensions of Hazardous Waste Policy," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262082780, July.
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"Prospect Theory: An Analysis of Decision under Risk,"
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- Sunstein,Cass R., 2004. "Risk and Reason," Cambridge Books, Cambridge University Press, number 9780521016254, November.
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- Elster,Jon, 1983. "Explaining Technical Change," Cambridge Books, Cambridge University Press, number 9780521270724, November. Full references (including those not matched with items on IDEAS)
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