Glossary

Glossary

Term Book Chapter Definition
Availability Heuristic Behavioral Finance Chapter 2: Psychology and Finance A mental shortcut that relies on immediate examples that come to mind. When making decisions, individuals may rely more heavily on recent information, assuming that it is more relevant than older, possibly more pertinent data.
Availability Heuristic Corporate Finance Chapter 15: Behavioral Corporate Finance This refers to overestimating the likelihood of events based on their recentness or vividness.