= Ellsberg paradox
{wiki=Ellsberg_paradox}
The Ellsberg paradox is a thought experiment in decision theory and behavioral economics, formulated by Daniel Ellsberg in the early 1960s. It illustrates people's aversion to ambiguity and uncertainty, highlighting how individuals tend to prefer known risks over unknown risks, even when the expected outcomes might suggest otherwise. In the classic version of the paradox, participants are presented with two urns: - **Urn A** contains 50 red balls and 50 black balls.
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