For many, the start of the coronavirus pandemic was terrifying. Descriptions of the break out in Europe and Asia caused panic purchasing and sheltering in place here at home. But, as time passed and people became acclimatized to life with masks and social distancing, many of those same individuals who were frightened at the outset began to let their guard down and take unnecessary threats.

In this episode of Choiceology with Katy Milkman (), we look at a peculiar disparity around how we view threat and uncommon events.

Jeff Elison () is a teacher and an avid rock climber. Jeff informs the story of a fateful get on a beautiful bright day just outside of Alamosa, Colorado. Jeff usually climbs up with good friends, however on this specific day, none of his regular partners were offered. Early in his climbing career, Jeff might have balked at a solo climb, however as a veteran, he felt great that he could handle the familiar climb securely. However then, he slipped and fell. …

Jeff Elison is a teacher of psychology at Adams State University () He is also the author of the book Vertical Mind: Psychological Techniques for Optimum Rock Climbing. ()

Next, Ido Erev () signs up with Katy to describe how we often obese rare events when we make decisions based on a description and underweight unusual events when we make choices from experience. You'll hear about his research identifying this phenomenon, along with numerous individual anecdotes demonstrating how everybody fall victim to these miscalculations from time to time.

Ido Erev is a psychologist, professor, and vice dean of the MBA program at the Technion– Israel Institute of Technology ().

Finally, Katy goes over techniques to alleviate the disadvantages of the description-experience gap in risky option () and ways to leverage the reality that we frequently underweight unusual opportunities as well.

Choiceology is an initial podcast from Charles Schwab (). For more on the series, visit schwab.com/podcast ().

If you delight in the program, please leave a ⭐ ⭐ ⭐ ⭐ ⭐ score or evaluation on Apple Podcasts. ().

Essential Disclosures

All expressions of opinion go through change without notice in reaction to shifting market conditions.

The comments, views, and viewpoints expressed in the presentation are those of the speakers and do not always represent the views of Charles Schwab.

All corporate names are for illustrative purposes only and are not a suggestion, offer to offer, or a solicitation of a deal to purchase any security.

Information consisted of herein from third-party companies is gotten from what are considered dependable sources. However, its precision, completeness or reliability can not be guaranteed.

Investing involves danger, including loss of principal.

The book, How to Modification: The Science of Getting from Where You Are to Where You Wish to Be, is not connected with, sponsored by, or backed by Charles Schwab & Co., Inc. (CS&C o.). Schwab has not examined the book and makes no representations about its material.

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