⬅️ Critical Thinking
- Our judgment regarding the costs and benefits of items is often significantly influenced by a feeling evoked by pictures or words not directly relevant to the actual cost or benefit.
- For some, the good or bad feeling they have just prior to making a decision is a bias that influences that decision and renders it irrational.
- For example, many people are willing to pay more for airline travel insurance that covers death from just terrorist acts than they would pay for insurance that covers death from all possible causes
- The expression “terrorist acts” has strong negative emotive content, which apparently leads many people to an irrational willingness to pay more for less coverage.
- People underestimate the lethality of all diseases except cancer, which is overestimated
- Advertisers bank on affect bias when they pay top dollar to beautiful celebrities to hawk their products.