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The Incentives Lab
HBT-IDN-0011 · Dimension IDN · Identity

Expected Value

Probability × payoff, summed across outcomes.

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

Scientific Definition

Probability × payoff, summed across outcomes.

Plain-English Definition

Probability × payoff, summed across outcomes.

Feynman Explanation

Outcomes are noise. Decisions are signal.

Core Principle

Probability × payoff, summed across outcomes.

Mechanisms

Psychological

Pending editorial review.

Behavioral Economic

Probability × payoff, summed across outcomes.

Neurological

Pending editorial review.

Evolutionary

Pending editorial review.

Sociological

Pending editorial review.

Computational

Pending editorial review.

Systems

Make decisions by expected value; judge them by process, not outcome.

Inputs (Triggers)

Pending editorial review.

Outputs (Behaviors)

Pending editorial review.

Behavioral Signature

Outcomes are noise. Decisions are signal.

Examples

Everyday
  • A 10% chance of winning $1M is worth $100K in expectation.
Modern (Organizational)
  • Make decisions by expected value; judge them by process, not outcome.
Historical

Pending editorial review.

Famous Experiments

Pending editorial review.

Design Principles

  • Document EV thinking on big decisions. Re-read after the outcome.

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
Make decisions by expected value; judge them by process, not outcome.
Amplifying Incentives
Make decisions by expected value; judge them by process, not outcome.
Org Failure Modes
Make decisions by expected value; judge them by process, not outcome.
Societal Failure Modes
Pending editorial review (HBT v1.0 auto-seed).
Ethical Considerations
Pending editorial review (HBT v1.0 auto-seed).
Redesign Strategies
Document EV thinking on big decisions. Re-read after the outcome.
Diagnostic Questions
  • Document EV thinking on big decisions. Re-read after the outcome.
Warning Signs

Pending editorial review.

Red Flags

Pending editorial review.

Intervention Playbook
Individual
Document EV thinking on big decisions. Re-read after the outcome.
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-IDN-0011 · IDN
Expected Value
EVBBBelief BiasEUExpected Utility (vs…IEIdentity EconomicsBRBase Rate FallacyBRBayes' Rule (Updating)BTBayes' TheoremBUBayesian UpdatingBLBeginner's LuckBSBlack SwanCoCoincidence

Knowledge Graph Neighbors

Version History

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