What is Ellsberg paradox in psychology?

This refers to the tendency to choose to deal with risky scenarios where people know the probability of the various possible outcomes as against alternative scenarios where they do not know the probable outcomes. This occurs even when the chances of winning are higher in the scenario where the probabilities are unknown. This is used to explain why people try to avoid situations that involve any degree of uncertainty regarding the outcome and instead prefer stability. It is named after American whistle-blower Daniel Ellsberg who proposed it in his paper “Risk, ambiguity and the savage axioms”.