The Hindsight Bias: The Role of the Availability Heuristic and Perceived Risk

The influence of outcome knowledge (Fischhoff, 1975) and the availability heuristic (Tversky & Kahneman, 1974) on judgments of perceived risk was explored here. This study found that subjects were capable of making relatively appropriate probability estimates for disease, accident, and homicide in foresight, but they made relatively biased estimated in hindsight. The results suggest that hindsight information activates the use of the availability heuristic on peoples' probability estimates of certain misfortune.