The Ambiguity Effect

The Ambiguity Effect is a psychological tendency where people prefer options with known risks over those with unknown or unclear risks. In other words, if you aren’t sure about the likelihood of a positive or negative outcome, you’re more likely to avoid that choice. This bias leads individuals to favor certainty and avoid ambiguous situations, even if the uncertain option might be better. It reflects our natural discomfort with uncertainty and the desire for predictability, influencing decision-making in areas like investing, healthcare, and everyday choices.