Scientific Definition
With clear property rights and low transaction costs, parties negotiate to efficient outcomes.
Plain-English Definition
With clear property rights and low transaction costs, parties negotiate to efficient outcomes.
Feynman Explanation
Most disputes are about unclear rights, not unclear values.
Core Principle
With clear property rights and low transaction costs, parties negotiate to efficient outcomes.
Mechanisms
Pending editorial review.
With clear property rights and low transaction costs, parties negotiate to efficient outcomes.
Pending editorial review.
Pending editorial review.
Pending editorial review.
Pending editorial review.
Resolve org friction by clarifying decision rights, not by adding process.
Inputs (Triggers)
Pending editorial review.
Outputs (Behaviors)
Pending editorial review.
Behavioral Signature
Most disputes are about unclear rights, not unclear values.
Examples
- Cross-functional disputes over scarce engineering resources.
- Resolve org friction by clarifying decision rights, not by adding process.
Pending editorial review.
Famous Experiments
Pending editorial review.
Design Principles
- Map decision rights before adding process.
Measurement Approaches
Pending editorial review.
Evidence
Pending editorial review.
Pending editorial review.
The Perverse Incentive Lens™
How this behavior is exploited — and how to redesign around it.
- Map decision rights before adding process.
Pending editorial review.
Pending editorial review.
Interactive Mini Network
Click any neighbor to re-center the graph and follow the threads of connection.
Knowledge Graph Neighbors
Auto-linked to the rest of the Human Behavior Taxonomy by family, domain, dimension, and shared keywords.
Exploiting price differences between markets for risk-free profit.
The study of how real humans actually decide — bounded, social, emotional, and inconsistent.
Specialize in what you give up the least to do.
Complements raise each other's value; substitutes lower it.
Fixed costs don't scale with output; variable costs do.
Innovation destroys old industries and creates new ones.
Each additional unit produces less marginal benefit.
A long-run planner self in conflict with a short-run impulsive self.
Owning something raises its valuation — sellers want more to give it up than buyers will pay to acquire.
Bad money drives out good when both are legally equivalent.
The mythical fully rational, self-interested, utility-maximizing agent neoclassical models assume.
One party has more or better information than another.