# Risk vs Uncertainty - **Risk** is the situation under which the decision outcomes and their probabilities of occurrences are known to the decision-maker, and **uncertainty** is the situation under which such information is not available to the decision-maker. - Research on decision-making under risk and uncertainty has two broad streams: normative and descriptive. - **Normative** research models how decision _should_ be made under risk and uncertainty, whereas **descriptive** research studies how decisions under risk and uncertainty are _actually_ made. - Descriptive studies have exposed weaknesses of some normative models in describing people’s judgment and decision-making and have compelled the creation of more intricate models that better reflect people’s decision under risk and uncertainty. https://link.springer.com/referenceworkentry/10.1057%2F978-1-349-94848-2_250-1#:~:text=Definition,unknown%20to%20the%20decision%2Dmaker.