Selection of Investment Targets
Selection of Investment Targets
Management is the allocation of resources
Complex entanglements make optimal allocation non-trivial
economies of scale ・Increasing yield/network externality: it is better to add to a larger one to make it even larger. Diminishing returns: Contrary to economies of scale, as you get bigger, the cost of getting even bigger increases.
Sunk cost: When something you have invested in becomes less profitable due to changes in the environment, etc., you should not use it as a factor in your decision because "investments made in the past" cannot be recovered, but people tend to think that it is "too good to throw away" what they have gained by investing a lot.
Time delay: humans tend to overlook impacts when a time delay exists before the impact appears
cookie clicker system games are games of allocating which of the diminishing returns to reinvest among the diminishing options. Democrasy visualized the complex entanglements ---
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