A cognitive bias that refers to the tendency of individuals to favor options that have known outcomes, over options that have uncertain outcomes, even when the uncertain option may have a higher expected value. This bias can affect various aspects of decision-making, such as investment choices, career decisions, or even personal relationships.
Individuals tend to prefer known outcomes because they provide a sense of certainty and security, even if the outcome is not necessarily favorable. This bias can lead to missed opportunities and suboptimal decisions, as the uncertain options may hold greater potential benefits.
One way to overcome ambiguity bias is to gather more information about the uncertain options and consider the potential benefits and risks. Additionally, it can be helpful to consider the potential regret of missing out on a favorable outcome due to the preference for known outcomes.