A Study On Analyzing The Relationship Between Heuristic Bias And Decision Making With Risk Perception As The Mediating Variable

Abstract

The current study on decision-making has shown that heuristic biases significantly influence people's choices and their subsequent perception of risk. This study aims to investigate the intricate relationship between heuristic bias, decision-making processes, and risk perception, with a particular focus on the mediating role of risk perception. The research employs a quantitative methodology, drawing on recognised concepts from behavioural economics and cognitive psychology. Data is collected from a diverse sample group via the use of surveys. The project seeks to examine how risk perception mediates the relationship between heuristic biases and decision-making results. This will be accomplished via the application of rigorous statistical analyses, including mediation analysis methodologies, to elucidate the direct effect of heuristic biases on decision-making outcomes. The anticipated outcomes are expected to enhance theoretical understanding and practical implementations across several domains, such as public policy, healthcare, and finance. Ultimately, this study seeks to elucidate the complex connections between cognitive biases, decision-making processes, and individuals' risk perceptions. By acquiring this information, decision-making may be enhanced and the detrimental impacts of heuristic biases can be reduced in real-world situations.