The, Decision Maker's Playbook

Chapter Seven

Think on the margin

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The judgement of value refers only to the supply with which the concrete act of choice is concerned.

Ludwig von Mises

BENEFITS OF THIS MENTAL TACTIC

Thinking on the margin is a fundamental tactic for rational decision making. It requires you to only take into account variables that are pertinent to your situation (rather than those that are set in the past and hence unchangeable). In its core, marginal thinking is economic thinking, as it always assumes that decisions are made by weighing additional costs against additional benefits. We often fall into the all or nothing trap in which we consider all the benefits and all the costs of a decision situation, which not only renders ...