Definition
Decision Reversibility: How costly it is to undo a decision (returns, switching cost, sunk cost, social cost).
Why it matters (T2.2)
Low reversibility increases the cost of errors, so it increases the justified cognitive budget and evidence threshold.
What makes a decision less reversible
| Factor | Example |
|---|---|
| return friction | short return window, restocking fees |
| switching cost | data migration, learning curve |
| sunk cost | accessories, subscriptions |
| social cost | public commitments |
References
- Payne, J. W., Bettman, J. R., & Johnson, E. J. (1993). The Adaptive Decision Maker. Cambridge University Press.[source]
- Kahneman, D. (2011). Thinking, Fast and Slow. Farrar, Straus and Giroux.[source]