Human Behavior November 19, 2022

Effort Heuristic

Effort Heuristic

When you work hard on a project, you have the tendency to overvalue the project, even if the project is worthless.

The more effort incurred, the higher the perceived value. This proclivity prevents you from seeing things objectively.

Investors, business owners, and even CEO are not immune to this fallacy.

More effort does not always comport with increased value.

You may also like...

Us Versus World’s Problems

The world’s problems are inherently complex. Ending poverty, war, nuclear weapon, child abuse, economic inequality, racism....

Ruminating

Anxiety can trigger ad infinitum ruminating that makes our brain scan for potential problems. As you...

Covering Up

When someone told a lie—whether it was committed remorsefully or not, it is commonsensical to expect...

Deceptive Delay of Gratification

You delay gratification to enjoy future reward. Be frugal now (present sacrifice) to gain compounding investment...