The Ambiguity Effect is where decision making is affected by a lack of information. So often in business (as in life), a decision needs to be made but evidence is scarce. The effect takes place where people tend to go for the options for which the probability of a favourable outcome is known, over an option for which the probability of a favourable outcome is unknown.
One useful counter-measure is to do as follows: Before deciding, create a scenario of the lesser-known path and experiment with how it might feel if it produced a favorable outcome. Even though it’s less probable, would the result by far greater?
For a full list of the most common biases, click here.