Affect Heuristic
Read Aloud
Listen to the content using your browser's built-in voice.
Read Aloud is not supported in this browser.
Affect Heuristic
uh-fekt hyoo-ris-tik
The affect heuristic is a mental shortcut where people make decisions based on their emotions instead of careful analysis.
If something “feels” good, people tend to see it as less risky and more rewarding. If it feels bad, they see it as more risky — even if the actual facts are different.
In simple terms, feelings guide decisions faster than logic.
A college student in Bengaluru had a very positive experience using a food delivery app that offered quick service and good customer support during a busy festival period.
When the company later launched its IPO, he applied for shares without checking its financials, profitability, or long-term prospects. His positive experience made him assume it would be a good investment.
He ignored reports about rising losses and strong competition because his decision was driven more by his feelings about the app than by proper analysis.
Paul Slovic
emotions influence risk perception and decision-making
investor behaviour
Definition
The affect heuristic is a mental shortcut where people make decisions based on their emotions instead of careful analysis.
If something “feels” good, people tend to see it as less risky and more rewarding. If it feels bad, they see it as more risky — even if the actual facts are different.
In simple terms, feelings guide decisions faster than logic.
Case Study
A college student in Bengaluru had a very positive experience using a food delivery app that offered quick service and good customer support during a busy festival period.
When the company later launched its IPO, he applied for shares without checking its financials, profitability, or long-term prospects. His positive experience made him assume it would be a good investment.
He ignored reports about rising losses and strong competition because his decision was driven more by his feelings about the app than by proper analysis.
Historical Reference
Paul Slovic
emotions influence risk perception and decision-making
investor behaviour
Illustration
