Finance & investing
Investors tend to categorize stocks based on how closely a company's narrative resembles past successes or failures (e.g., 'the next Amazon'), leading them to ignore base rates of company survival, overweight vivid growth stories, and chase patterns in random market fluctuations as though they signal meaningful trends.
Medicine & diagnosis
Clinicians may diagnose conditions based on how well a patient's symptoms match a textbook prototype of a disease, while underweighting the actual prevalence (base rate) of that disease in the patient's demographic — leading to overdiagnosis of rare but 'classic-looking' conditions and underdiagnosis of common but atypical presentations.