Naive Allocation
A heuristic where individuals evenly distribute resources across all options, regardless of their specific needs or potential.
145 topics found for
“decision optimization”
Law of Diminishing Returns
A principle stating that as investment in a single area increases, the rate of return on that investment eventually decreases.
Dual Process Theory
A framework suggesting there are two systems of thinking: System 1 (fast, automatic) and System 2 (slow, deliberate), influencing decision-making and behavior.
Descriptive Analytics
The interpretation of historical data to identify trends and patterns.
Analytics
The systematic computational analysis of data or statistics to understand and improve business performance.
Predictive Analytics
The use of statistical techniques and algorithms to analyze historical data and make predictions about future outcomes.
Expected Utility Theory
A theory in economics that models how rational individuals make decisions under risk by maximizing the expected utility of their choices.
Decoy Effect
A cognitive bias where consumers change their preference between two options when presented with a third, less attractive option.
Overchoice
The phenomenon where having too many options leads to decision-making paralysis and decreased satisfaction.