Andy_McKenzie comments on What are the most common and important trade-offs that decision makers face? - Less Wrong
You are viewing a comment permalink. View the original post to see all comments and the full post content.
You are viewing a comment permalink. View the original post to see all comments and the full post content.
Comments (30)
Yes, exactly. Kind of narrow, but I just find it really cool. And, lots of things decision makers have to do can be formulated as games with other agents.
I agree that they might not be "intrinsic", but if they're very commonly inversely correlated in situations we care about (which I think they are), then considering it as a trade-off can still be useful. See here for more.
Thanks. I'll make this explicit next time. I like to have an upside connoted by both words of the trade-offs, which is why I didn't like risk vs reward.
Come to think of it, "Risk vs Reward" is oddly-worded. It's both vs neither. If you had to choose between the two, you'd pick reward every time.
That's because there ain't no such thing :-) there is no "vs" there.
People usually talk about risk/reward ratios. The trade-off is between a larger reward with more uncertainty and a lower reward with less uncertainty. Your preferences in this trade-off are often described as risk aversion.