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The Incentives Lab
HBT-COG-0528 · Dimension COG · Cognition

Planning Fallacy

We underestimate time and cost; we overestimate benefit.

Probability Bias·Cognitive Bias·Grade B·draft· enriching…

Scientific Definition

We underestimate time and cost; we overestimate benefit.

Plain-English Definition

We underestimate time and cost; we overestimate benefit.

Feynman Explanation

Every six-month transformation is, in fact, three years.

Core Principle

We underestimate time and cost; we overestimate benefit.

Mechanisms

Psychological

We underestimate time and cost; we overestimate benefit.

Behavioral Economic

Pending editorial review.

Neurological

Pending editorial review.

Evolutionary

Pending editorial review.

Sociological

Pending editorial review.

Computational

Pending editorial review.

Systems

Pending editorial review.

Inputs (Triggers)

Pending editorial review.

Outputs (Behaviors)

Pending editorial review.

Behavioral Signature

Every six-month transformation is, in fact, three years.

Examples

Everyday
  • An annual plan that slips by 40% — again.
Modern (Organizational)
  • Strategy commitments made on numbers we've never once hit.
Historical

Pending editorial review.

Famous Experiments

Pending editorial review.

Design Principles

  • Multiply internal estimates by your own historical slip ratio.

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
Integration timelines that ignore the org change cost entirely.
Amplifying Incentives
Strategy commitments made on numbers we've never once hit.
Org Failure Modes
Strategy commitments made on numbers we've never once hit.
Societal Failure Modes
Pending editorial review (HBT v1.0 auto-seed).
Ethical Considerations
Pending editorial review (HBT v1.0 auto-seed).
Redesign Strategies
Multiply internal estimates by your own historical slip ratio.
Diagnostic Questions
  • Multiply internal estimates by your own historical slip ratio.
Warning Signs

Pending editorial review.

Red Flags

Pending editorial review.

Intervention Playbook
Individual
Multiply internal estimates by your own historical slip ratio.
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
Integration timelines that ignore the org change cost entirely.
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-0528 · COG
Planning Fallacy
PFAAAmbiguity AversionBRBase Rate NeglectCFConjunction FallacyGFGambler's FallacyHFHot-Hand FallacyOBOptimism BiasPBPessimism BiasPIPessimism in Forecas…ZBZero-Risk BiasABAction Bias

Knowledge Graph Neighbors

Version History

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