Which concept is described as the use of information readily available from memory to make judgments?

Which concept is described as the use of information readily available from memory to make judgments?

• A. Availability Bias
• B. Representativeness Bias
• C. Market Culture
• D. Rational Decision Making

Answer: (A)

Availability bias describes using information that’s readily brought to mind from memory to make judgments. This memory-based shortcut means people estimate how common or likely something is based on how easily they can recall examples, which are often recent, dramatic, or highly publicized. Because memorable events stand out in memory, they can seem more frequent or probable than they actually are—for instance, thinking air travel is riskier after hearing a few vivid crash stories, even though statistics show it’s very safe. Representativeness bias, by contrast, relies on similarity to a stereotype or prototype rather than how easily an example comes to mind, and rational decision making involves systematic analysis rather than memory-based judgments. Market culture refers to organizational norms and values, not a judgment shortcut.

Availability bias describes using information that’s readily brought to mind from memory to make judgments. This memory-based shortcut means people estimate how common or likely something is based on how easily they can recall examples, which are often recent, dramatic, or highly publicized. Because memorable events stand out in memory, they can seem more frequent or probable than they actually are—for instance, thinking air travel is riskier after hearing a few vivid crash stories, even though statistics show it’s very safe.

Representativeness bias, by contrast, relies on similarity to a stereotype or prototype rather than how easily an example comes to mind, and rational decision making involves systematic analysis rather than memory-based judgments. Market culture refers to organizational norms and values, not a judgment shortcut.