Browse & Filter Biases

Showing 187 biases.

Need To Act Fast

We favor simple–looking options and complete information over complex, ambiguous options

Ambiguity bias

Description

A cognitive bias where decision making is affected by a lack of information, or "ambiguity". 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.

Ambiguity bias in business decision

An investor chooses a fund with a clear, though modest, track record over a new fund with potentially higher returns but less historical data, due to the uncertainty of the latter.

Ambiguity bias in personal life decision

You favour a known outcome over a potentially better but uncertain one, like choosing a familiar restaurant instead of trying a new one.