Ostrich Effect

The ostrich effect is the tendency to avoid or delay exposure to information that a person expects to be negative or distressing, such as unfavorable financial news, medical test results or investment losses, even when acquiring that information would be useful for making a decision. The term draws on the folk image of an ostrich burying its head in the sand, and the effect has been studied most extensively in behavioral finance, where researchers have found that investors check their portfolios less often during market downturns than during periods of rising prices. It is considered a form of motivated information avoidance, distinct from simple inattention, because the avoidance specifically tracks the expected unpleasantness of the information.