 |
…researchers concluded that although widely used, this ‘binge and purge’ approach is a bad way to control labor costs.
|
196 |
 |
…the sunk cost effect… [is] a systematic cognitive error in which people take into account money, time, effort, or any other resources they have previously sunk into an endeavor when making decisions about whether to continue and spend more.
|
89 |
 |
As the price tag goes, so does the effect of sunk costs.
|
90 |
 |
When we embark on an endeavor, we also accumulate debris – the time, money, and effort we have spent. As we accumulate costs, the mass grows, escalating our commitment and making it more an more difficult to quit.
|
96 |
 |
If you are able to cut your losses earlier, it’s a huge win. An added bonus is that it frees you up so you can turn your limited attention and resources to more fruitful endeavors that have a higher expected value, reducing opportunity costs.
|
113 |
 |
Escalation of commitment is costly. If the participants had walked away sooner, they would have made more. It may feel like quitting slows us down, but… it is persistence that is often the culprit.
|
83 |
 |
…whereas the cost to enter a given industry in the face of well-entrenched participants can be very high, when the structure breaks, the cost to enter may become trivially small…
|
051 |
 |
By virtue of the functional specialization that prevails, horizonal industries tend to be more cost-effective than their vertical equivalents. Simply put, it’s harder to be the best of class in several fields than in just one.
|
052 |
 |
Cloud servers, run by companies big and small all over the world, democratize the world of big data by reducing the cost of data storage and analysis.
|
120 |
 |
Lesson learned: Don’t try and be a hero by taking on absolutely every task in your business. Analyze the opportunity cost.
|
100 |
