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...

Small Elite Teams

We subconsciously exert lower effort as the number of teammates increase. This is worse in an...

To Donate Time or Money?

Volunteering feels good. A lawyer earning $500 per hour can use the money to hire 2...

Prevention Over Cure

Managers who solve problems get more credit than those who prevent problems. A passerby who saves...

Unexpected Phenomenon

An odd one out causes a disproportionate effect on statistical results. A single financial catastrophe blows...