Relating to entrepreneurship, the ambiguity effect seems particularly dangerous. There is no such thing as having perfect information. In fact, the more you know, the less opportunity and upside you can have in a venture. Why? Because the unknown equates to risk, and risk correlates with reward.

Not knowing enough is one of the major excuses to avoid starting a venture. Acting optimally on imperfect and limited information, on the other hand, is an entrepreneurial trait.