Psychological Theories of Risk

Psychological theories of risk explore how people perceive and respond to potential dangers. They suggest that our judgments are influenced by emotions, biases, and personal experiences rather than objective facts alone. For example, fear can make risks seem larger than they are, while familiarity with a situation may reduce perceived danger. Theories like Prospect Theory explain that we tend to weigh potential losses more heavily than equivalent gains. Overall, these theories highlight that our decision-making about risks is shaped by psychological factors, often leading us to underestimate or overestimate danger based on how information is presented and our individual perceptions.