People are strange. We all make decisions that are difficult to explain, sometimes even baffling. In particular, we make baffling decisions about how we spend. Why do we gamble, knowing that the casino is always in the green? Why do we hardly ever cancel subscriptions, even the ones we don’t use, and when we do, […]
Tag: business
Loss Aversion and the Sunk Cost Trap in Venture Capital In the high-risk world of venture capital (VC), balancing the tightrope of innovation and risk is a key skill to master. Knowing when risks have reached their limits can mean the difference between cutting losses and doubling down in hopes of a future payoff. This […]
How to succeed in a startup business? Well, there is no cookie-cutter approach that works universally. Every business has a set of unique characterizing elements and has to find its optimal organizational balance. Notwithstanding the uniqueness of the success factors, which sometimes can be summarized with “luck”, there is an often overlooked commonality behind startup business failures which can be analyzed through behavioral lenses. A well-known statistic is that 9 out of […]
Imagine you are a leader of the group, a CEO of a well-known firm. Your job is to guide people to achieve something together. As a businessman first thing that pops into your head, in order to make people work harder, is the simplest way: I should pay them more. If I want a group […]
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