Read - Reading: Behavioral Economics When Psychology and Economics Collide by Scott Huettel (The Great Courses)
Lecture 8: Ambiguity—The Unknown Unknowns
In behavioral economics, “ambiguity” refers to conditions in decision making in which we do not know and cannot estimate the probabilities of potential outcomes. Here, investigate three circumstances in decision making that produce ambiguity: “hidden information,” “asymmetrical knowledge,” and “unfamiliar contexts.” Then, learn a two-step approach for dealing effectively with ambiguity.
Finished lecture 8 on ambiguity
Interesting applications to insurance here and some good reasons why the market and capitalism won’t help fix some problems.

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