Analysis on Feedback Mechanisms of the Availability Heuristic and Self-Fulfilling Prophecy in Modern Society

Zhongchang Fu

doi:10.54691/ec298z83

Authors

Zhongchang Fu

DOI:

https://doi.org/10.54691/ec298z83

Keywords:

Availability heuristic, self-fulfilling prophecy, digital media, feedback loop.

Abstract

In this paper, the author explores the approach that the availability heuristic and self-fulfilling prophecy interact in the modern world, with a focus on examining how the two generate an accelerated feedback loop through the dissemination of digital media. The availability heuristic leads people to rely on easily accessible information when making decisions, thereby overestimating the significance of events. The self-fulfilling prophecy refers to the phenomenon where beliefs translated into collective action come true. When combined together, cognitive biases and behavioral outcomes reinforce each other, driving rapid changes in social reality. The author uses cases such as the GameStop stock incident, COVID-19 panic buying sprees, cryptocurrency market volatility, and the AI investment boom to illustrate the financial, social, and technological manifestations of this cyclical phenomenon and its associated risks. Finally, measures to mitigate these situations from three perspectives, including media responsibility, public education, and policy intervention, are proposed to provide insights for understanding and addressing cognitive biases and social behaviors in modern society.

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References

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