Skip to main content
The Incentives Lab
HBT-COG-0535 · Dimension COG · Cognition

Possibility Effect

We overweight tiny probabilities of large gains or losses.

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

Scientific Definition

We overweight tiny probabilities of large gains or losses.

Plain-English Definition

We overweight tiny probabilities of large gains or losses.

Feynman Explanation

Lottery tickets and pandemic preparedness, explained by the same curve.

Core Principle

We overweight tiny probabilities of large gains or losses.

Mechanisms

Psychological

Pending editorial review.

Behavioral Economic

We overweight tiny probabilities of large gains or losses.

Neurological

Pending editorial review.

Evolutionary

Pending editorial review.

Sociological

Pending editorial review.

Computational

Pending editorial review.

Systems

Long-tail opportunities and tail risks both get distorted attention.

Inputs (Triggers)

Pending editorial review.

Outputs (Behaviors)

Pending editorial review.

Behavioral Signature

Lottery tickets and pandemic preparedness, explained by the same curve.

Examples

Everyday
  • Buying a $2 ticket for a 1-in-300M chance feels rational. It isn't.
Modern (Organizational)
  • Long-tail opportunities and tail risks both get distorted attention.
Historical

Pending editorial review.

Famous Experiments

Pending editorial review.

Design Principles

  • Force base-rate framing. 'One in a million' is not 'maybe.'

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
Long-tail opportunities and tail risks both get distorted attention.
Amplifying Incentives
Long-tail opportunities and tail risks both get distorted attention.
Org Failure Modes
Long-tail opportunities and tail risks both get distorted attention.
Societal Failure Modes
Pending editorial review (HBT v1.0 auto-seed).
Ethical Considerations
Pending editorial review (HBT v1.0 auto-seed).
Redesign Strategies
Force base-rate framing. 'One in a million' is not 'maybe.'
Diagnostic Questions
  • Force base-rate framing. 'One in a million' is not 'maybe.'
Warning Signs

Pending editorial review.

Red Flags

Pending editorial review.

Intervention Playbook
Individual
Force base-rate framing. 'One in a million' is not 'maybe.'
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-0535 · COG
Possibility Effect
PEAEAmbiguity EffectCECertainty EffectCVConvexity vs. Concav…DSDark Side of InfluenceDADread AversionMOMargin of SafetyMLMyopic Loss AversionPOPoint of No ReturnPNProbability NeglectRCRisk Compensation

Knowledge Graph Neighbors

Version History

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