Myopic Loss Aversion
A cognitive bias where individuals tend to avoid risks when they perceive potential losses more acutely than potential gains.
67 topics found for
“process balance”
Surrogation
The process by which a measure or metric comes to replace the underlying objective it is intended to represent, leading to distorted decision-making.
Law of Diminishing Returns
A principle stating that as investment in a single area increases, the rate of return on that investment eventually decreases.
Hyperbolic Discounting
A cognitive bias where people disproportionately prefer smaller, immediate rewards over larger, later rewards.
Function Allocation
The process of determining which tasks should be performed by humans and which by machines in a system.
Game Theory
A mathematical framework used to analyze strategic interactions where the outcomes depend on the actions of multiple decision-makers.
Probability Matching
A decision-making strategy where individuals allocate resources proportionally to the probability of an outcome occurring, rather than optimizing the most likely outcome.
Optimism Bias
A cognitive bias that causes people to believe they are less likely to experience negative events and more likely to experience positive events than others.
Technical Debt
The implied cost of additional rework caused by choosing an easy or limited solution now instead of using a better approach that would take longer.