Scientific Definition
Each additional unit of a good provides less satisfaction than the previous one.
Plain-English Definition
Each additional unit of a good provides less satisfaction than the previous one.
Feynman Explanation
The first slice of pizza is heaven. The fifth is a mistake.
Core Principle
Each additional unit of a good provides less satisfaction than the previous one.
Mechanisms
Pending editorial review.
Each additional unit of a good provides less satisfaction than the previous one.
Pending editorial review.
Pending editorial review.
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Pending editorial review.
Scale benefits are not infinite; find the inflection point.
Inputs (Triggers)
Pending editorial review.
Outputs (Behaviors)
Pending editorial review.
Behavioral Signature
The first slice of pizza is heaven. The fifth is a mistake.
Examples
- Adding more engineers to a small project yields diminishing returns.
- Scale benefits are not infinite; find the inflection point.
Pending editorial review.
Famous Experiments
Pending editorial review.
Design Principles
- Track marginal return per unit of any input.
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.
- Track marginal return per unit of any input.
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.
Decisions hinge on the next unit, not on the average.
The satisfaction or value a person derives from an outcome — the unit economists try to maximize.
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.
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.