Choice under Uncertainty

Choice under uncertainty refers to making decisions when the outcomes are unknown or unpredictable. In everyday life, this could involve choosing whether to invest in the stock market, deciding to pursue a new job opportunity, or even planning for a vacation. People weigh potential risks and rewards based on available information, personal preferences, and past experiences. Since uncertainty means we can't predict the future with certainty, these decisions often involve trade-offs and require balancing optimistic and pessimistic outcomes to arrive at a conclusion that feels right for the individual.