Ellsberg Paradox A barrel contains a mixture of 90 red, blue, a... | Filo
Ellsberg Paradox A barrel contains a mixture of 90 red, blue, a... | Filo
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Your fear of the unknown and your brain: ● Link: https://arata.se/hello317 ● The Ellsberg Paradox, named after economist Daniel Ellsberg, is a classic example of the Ambiguity Effect. It demonstrates that people tend to avoid options with uncertain probabilities, even if those options might be more advantageous. And this can be so strong that we even start to contradict ourselves. The Ambiguity Effect is a cognitive bias where people prefer options with known probabilities over options with unkn
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