behavioral

Salience Bias

Salience bias is a cognitive bias that causes information that stands out or captures attention to be given more weight in judgments than less salient data. It can lead to overemphasis on memorable events, headlines, or recent experiences, even when they are not representative.

Example: Example: An investor may give disproportionate weight to a dramatic earnings surprise news story and overlook longer-run performance data when forming expectations about a stock's future behavior.

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