In prospect theory, the pseudocertainty effect is the tendency for people to perceive an outcome as certain while it is actually uncertain in multi-stage decision making.
[1] The pseudocertainty effect was illustrated by Daniel Kahneman, who received the Nobel Prize in economics for his work on decision making and decision theory, in collaboration with Amos Tversky.
The studies that they researched used real and hypothetical monetary gambles and were often used in undergraduate classrooms and laboratories.
[2] However, the discrepancy between the answers were surprising because the two problems were designed to have identical outcomes.
This is also known as cancellation, meaning that possible options are yielding to the same outcome thus ignoring decision process in that stage.