Naive Allocation
A heuristic where individuals evenly distribute resources across all options, regardless of their specific needs or potential.
25 topics found for
“observational study”
Multiple Regression
A statistical technique that uses several explanatory variables to predict the outcome of a response variable, extending simple linear regression to include multiple input variables.
80/20 Rule
A principle stating that 80% of effects come from 20% of causes, often used to prioritize tasks and identify key areas of focus.
Zero Price Effect
A phenomenon where people perceive an item as more valuable when it is free, leading to an increased likelihood of choosing the free item over a discounted one.
Social Proof
A psychological phenomenon where people follow the actions of others in an attempt to reflect correct behavior for a given situation.
Scarcity Principle
The economic theory that suggests limited availability of a resource increases its value, influencing decision-making and behavior.
Scaling Fallacy
A cognitive bias where people underestimate the complexity and challenges involved in scaling systems, processes, or businesses.