Ambiguity drives more diversification decisions, challenging traditional risk theories.
The study looked at how people make decisions when faced with uncertain options. They found that when options are unclear, people are more likely to diversify their choices. This means they spread out their bets instead of putting all their eggs in one basket. The researchers did an experiment and discovered that people tend to stick with a safe bet when they can't diversify. This behavior doesn't fit with current theories about decision-making in uncertain situations.