Ambiguity Effect: Avoiding Decisions From Uncertainty - Cognitive Series | Academy 4 Social Change

Ambiguity Effect: Lesson Plan

Topic

The ambiguity effect is the tendency to avoid making choices that involve uncertainty. This cognitive can be seen when decision-making is affected b y a lack of information. It affects various aspects of life, and being aware of it can help us become more informed consumers, presenters, and voters.

Possible subjects/classes Time needed

Psychology, Sociology, Economics, 30-35 minutes Business, Marketing, Civics

Video link: https://academy4sc.org/topic/ambiguity-effect-avoiding-decisions-from-uncertain ty/

Objective: What will students know/be able to do at the end of class?

Students will be able to... ● Define the term ambiguity bias. ● Identify situations in which the concept can be applied. ● Explain how to best use or defend against the ambiguity effect.

Key Concepts & Vocabulary

Decision theory

Materials Needed

Worksheet, Student Internet Access

Before you watch

Turn & Talk: You’re at a store deciding between purchasing two similar items (you can leave this vague or list something specific like a pair of sneakers, a snack, an electronic device, etc.). The price of each item is the same, so how do you decide which one to buy? Share your reasoning with a partner. Was it the brand? Did you think about whether you or someone you know had bought it before? As a class, did you have similar rationales with the students near you?

Ambiguity Effect: Avoiding Decisions From Uncertainty - Cognitive Biases Series | Academy 4 Social Change

While you watch

1. Define the ambiguity effect. 2. What is one real-life application of the ambiguity effect?

After you watch/discussion questions

1. Provide an example in which you believe the ambiguity effect was used to convince someone to do something. 2. Can you think of a time in which you decided on the option you knew the least about versus the one you were confident about? 3. Why do you think you made this choice? What are things that can happen if you choose something you don’t know much about? Can those things happen if you select the option you know most about?

Activity Ideas

● In groups, have students discuss how to combat the ambiguity effect in various spheres of life: consumer behavior, voter behavior, online behavior, etc. Have students write down their strategies and debrief as a class. ● What’s a country, culture, or group that you don’t know much about? What is your opinion of it based on your limited knowledge? Conduct 10-15 minutes of research. Did your opinion change based on what you learned? ● Individually complete the Worksheet and review answers as a class.

Sources/places to learn more

1. Anand, Paul (1993). Foundations of Rational Choice Under Risk. Oxford University Press. ISBN 0-19-823303-5 . 2. Borcherding, Katrin; Laričev, Oleg Ivanovič; Messick, David M. (1990). Contemporary Issues in Decision Making . North-Holland. p. 50. ISBN 978-0-444-88618-7. 3. Frisch, Deborah; Baron, Jonathan (1988). "Ambiguity and rationality". Journal of Behavioral Decision Making . 1 (3): 149–157. doi: 10.1002/bdm.3960010303 .