ABSTRACT
Intuition and even personal experience would suggest that risk perception influences decision making, and while many consider this to be the case empirical research has often failed to acknowledge adequately the role of risk perception in the decision making process. Consequently, it has been generally assumed that such exogenous variables directly influence decision making, which gives an invalid account of the decision making process. Human decision making typically takes place under a constant barrage of information. A further issue of interest that has already been identified as prevalent in the decision making literature and relevant to the understanding of risk perception is the framing effect. As such, what is intended is a brief introduction to each of these biases along with an illustration of how they influence the perception of risk in the decision making process. The availability bias does not always carry with it negative consequences for risk perception and decision making.
