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The Incentives Lab
HBT-COG-0189 · Dimension COG · Cognition

Convexity vs. Concavity

Convex payoffs gain more than they lose; concave do the opposite.

Risk·Mental Model·Grade B·draft· enriching…

Scientific Definition

Convex payoffs gain more than they lose; concave do the opposite.

Plain-English Definition

Convex payoffs gain more than they lose; concave do the opposite.

Feynman Explanation

Hunt for convex. Run from concave.

Core Principle

Convex payoffs gain more than they lose; concave do the opposite.

Mechanisms

Psychological

Pending editorial review.

Behavioral Economic

Convex payoffs gain more than they lose; concave do the opposite.

Neurological

Pending editorial review.

Evolutionary

Pending editorial review.

Sociological

Pending editorial review.

Computational

Pending editorial review.

Systems

Choosing strategies whose error distributions are kind.

Inputs (Triggers)

Pending editorial review.

Outputs (Behaviors)

Pending editorial review.

Behavioral Signature

Hunt for convex. Run from concave.

Examples

Everyday
  • Venture capital is convex. Insurance underwriting is concave.
Modern (Organizational)
  • Choosing strategies whose error distributions are kind.
Historical

Pending editorial review.

Famous Experiments

Pending editorial review.

Design Principles

  • Plot every initiative on the convex/concave axis before committing.

Measurement Approaches

Pending editorial review.

Evidence

Evidence Grade
B (A strongest → E speculative)
Replication
★★★☆☆
Intervention Confidence
3 / 5
Consensus
Pending editorial review (HBT v1.0 auto-seed).
Limitations
Pending editorial review (HBT v1.0 auto-seed).
Open Research Questions

Pending editorial review.

Primary References

Pending editorial review.

Signature Section

The Perverse Incentive Lens™

How this behavior is exploited — and how to redesign around it.

Exploitation
Choosing strategies whose error distributions are kind.
Amplifying Incentives
Choosing strategies whose error distributions are kind.
Org Failure Modes
Choosing strategies whose error distributions are kind.
Societal Failure Modes
Pending editorial review (HBT v1.0 auto-seed).
Ethical Considerations
Pending editorial review (HBT v1.0 auto-seed).
Redesign Strategies
Plot every initiative on the convex/concave axis before committing.
Diagnostic Questions
  • Plot every initiative on the convex/concave axis before committing.
Warning Signs

Pending editorial review.

Red Flags

Pending editorial review.

Intervention Playbook
Individual
Plot every initiative on the convex/concave axis before committing.
Team
Pending editorial review (HBT v1.0 auto-seed).
Organization
Pending editorial review (HBT v1.0 auto-seed).
Policy
Pending editorial review (HBT v1.0 auto-seed).
AI Implications
Detection
Pending editorial review (HBT v1.0 auto-seed).
Measurement
Pending editorial review (HBT v1.0 auto-seed).
Mitigation
Pending editorial review (HBT v1.0 auto-seed).
Responsible Use
Pending editorial review (HBT v1.0 auto-seed).

Interactive Mini Network

Click any neighbor to re-center the graph and follow the threads of connection.

HBT-COG-0189 · COG
Convexity vs. Concavity
CVAEAmbiguity EffectCECertainty EffectDSDark Side of InfluenceDADread AversionMOMargin of SafetyMLMyopic Loss AversionPOPoint of No ReturnPEPossibility EffectPNProbability NeglectRCRisk Compensation

Knowledge Graph Neighbors

Version History

v1.1.0 · 2026-06-28Initial auto-seed from corpus.