Scientific Definition
Decisions optimize utility, not value.
Plain-English Definition
Decisions optimize utility, not value.
Feynman Explanation
$1M to a billionaire is not $1M to a startup.
Core Principle
Decisions optimize utility, not value.
Mechanisms
Pending editorial review.
Decisions optimize utility, not value.
Pending editorial review.
Pending editorial review.
Pending editorial review.
Pending editorial review.
Why two rational actors can disagree on the same EV.
Inputs (Triggers)
Pending editorial review.
Outputs (Behaviors)
Pending editorial review.
Behavioral Signature
$1M to a billionaire is not $1M to a startup.
Examples
- Risk aversion in capital allocation.
- Why two rational actors can disagree on the same EV.
Pending editorial review.
Famous Experiments
Pending editorial review.
Design Principles
- Factor utility curves into decision frameworks for big bets.
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.
- Factor utility curves into decision frameworks for big bets.
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.
Probability × payoff, summed across outcomes.
Evaluating an argument's logic based on whether you agree with the conclusion.
Decisions are shaped by who we believe we are — not only by monetary payoffs.
Each additional unit of a good provides less satisfaction than the previous one.
Vivid images of who we could become drive present-day effort.
The satisfaction or value a person derives from an outcome — the unit economists try to maximize.
How will I feel about this in 10 minutes / 10 months / 10 years?
Basics first (health/finances), then depth (mastery/impact), then altruism (widening circle).
A group decides on a course of action that nobody actually wants, because everyone assumes others prefer it.
Inattention or forgetfulness caused by low attention, hyperfocus, or distraction.
Deriving general rules from specific examples; the leap from instance to concept.
Power tends to corrupt, and absolute power corrupts absolutely.