Ambiguity Effect

People prefer known risks over unknown ones, often avoiding options with ambiguous probabilities or consequences.
dataset
Decision Making
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Encourages clear presentation of options for better user decisions.

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Users may avoid valuable options due to perceived uncertainty.

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Search
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Product Pages
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Task Success
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Drop-off
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Errors
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Cognitive Load
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Trust & Confidence

The Study

The Ambiguity Effect illustrates the preference for options with known probabilities over those with unknown ones. Daniel Ellsberg's 1961 experiment investigated decision-making when probability information is incomplete. Participants were given choices between options with specified and unspecified probabilities of success. The study found that participants consistently avoided ambiguous options, even when the potential rewards were higher, underscoring a general aversion to uncertainty.

The result

The results confirmed that individuals tend to avoid unknown risks due to discomfort with uncertainty. This cognitive bias influences choices in user interfaces, especially when unfamiliar or vague options are presented.

Actionable tips

1.

Clarify outcomes with transparent information.

2.

Reduce ambiguity with familiar terminology.

3.

Offer examples and case studies for clarity.

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