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.

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