Ambiguity Effect

We tend to avoid options that we consider to be ambiguous or missing information. We dislike uncertainty and are therefore more inclined to select an option where the probability of achieving a favorable outcome is known.

#cognition

  1. Frisch, D., & Baron, J. (1988). Ambiguity and rationality. Journal of Behavioral Decision Making, 1(3), 149–157. https://doi.org/10.1002/bdm.3960010303
  2. Borghans, L, Golsteyn, B.H.H., Heckman, J.J., and Meijers, H. (2009). GENDER DIFFERENCES IN RISK AVERSION AND AMBIGUITY AVERSION. Journal of the European Economic Association. 7(2-3), 649-658.
  3. Ellsberg, D. (1961). Risk, ambiguity, and the savage axioms. The Quarterly Journal of Economics. 75(4), 643–669.
  4. Howard, J. (2018). Ambiguity Effect. Cognitive Errors and Diagnostic Mistakes: A Case-Based Guide to Critical Thinking in Medicine. 15-19. doi: 10.1007/978-3-319-93224-8_2
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