Sometimes it seems as if danger lurks around every corner. News reports of events like plane crashes and shark attacks make grave risk to life and limb feel real and imminent. And while there’s no doubt that risk is a part of life, are these the types of events we should really be concerned about?

On this episode of Choiceology with Dan Heath, we examine a bias that affects the way you perceive both risk and reward.

We trace how this bias may have helped your ancestors avoid lions lurking in the tall grass—but may also negatively affect your decisions around things like vacations and lotteries.

The episode begins with Ranie Pearce and her harrowing tale of adventure in the middle of the Pacific Ocean. Ranie Pearce is and accomplished open water swimmer and a member of the South End Rowing Club

You’ll hear an experiment involving sharks—and something even more dangerous—at the Vancouver Aquarium in British Columbia.

And Dan Gardner explains the psychological roots of our common misperceptions about risk and reward. He is the author of Risk: The Science and Politics of Fear

You can find out how to reduce the influence of this bias in your financial decisions in an article called Easy Access: How the Availability Heuristic Hurts Our Judgments.

Choiceology is an original podcast from Charles Schwab. For more on the series go to schwab.com/podcast

If you enjoy the show, please leave a ⭐⭐⭐⭐⭐ rating or review on Apple Podcasts.

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Swimming with Sharks 29:06 Share

Choiceology with Katy Milkman

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Swimming with Sharks