Tag Archives: psychology

Aspects of Task Completion

What are the aspects of a task that make it more likely to be completed? Effort involved: An easy task is more likely to be completed. Make tasks as easy as possible. Uncertainty: Tasks whose progress is predictable are more … Continue reading

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Gains and Losses

Let’s say that on a particular day, you are in a calm state of mind. Neither too happy, nor sad. Suddenly you are notified that you have been selected for an award of Rs. 10,000. The award is genuine, there … Continue reading

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Usefulness of Sunk Costs

In an earlier article, we defined sunk costs, and observed that attributing too much importance to sunk costs leads to the sunk cost fallacy. Is there any use at all in considering sunk costs? In some cases, yes. To see … Continue reading

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Marginal Costs

A marginal cost is an incremental cost to be paid for an incremental good or service, in addition to the primary costs incurred, which are typically much larger. For example, if you buy a home, then you incur an upfront … Continue reading

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