• The ambiguity effect is a tendency to avoid choices that involve
uncertainty. It can be simply described that discards possibilities that involve unknown information. • The ambiguity effect is a cognitive bias where decision making is affected by a lack of information, or "ambiguity". The effect implies that people tend to select options for which the probability of a favorable outcome is known, over an option for which the probability of a favorable outcome is unknown. • When people make choices, sometimes they have a good understanding of the probability of something happening while other times the situation is ambiguous, whereby the probability of the event is unknown. In such situations, people are more likely to choose or preferring a known probability over an unknown probability. Avoid • Try assessing the probability range for ambiguous choices.