Scientific Definition
Innovation destroys old industries and creates new ones.
Plain-English Definition
Innovation destroys old industries and creates new ones.
Feynman Explanation
Progress is a polite word for obsolescence.
Core Principle
Innovation destroys old industries and creates new ones.
Mechanisms
Pending editorial review.
Innovation destroys old industries and creates new ones.
Pending editorial review.
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Every successful business is eventually a target of creative destruction.
Inputs (Triggers)
Pending editorial review.
Outputs (Behaviors)
Pending editorial review.
Behavioral Signature
Progress is a polite word for obsolescence.
Examples
- Streaming destroyed video rental, then reshaped film production.
- Every successful business is eventually a target of creative destruction.
Pending editorial review.
Famous Experiments
Pending editorial review.
Design Principles
- Invest in self-disruption before competitors do it for you.
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.
- Invest in self-disruption before competitors do it for you.
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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.
With clear property rights and low transaction costs, parties negotiate to efficient outcomes.
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.
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.