Definition
Corollary T2.1: High-Value Decisions Merit More Effort: If the value is high, invest more cognitive budget and use systematic evaluation.
Derived from
From T2 Cognitive Budget Theorem: /en/wiki/theorem-2-cognitive-budget
Practical guidance
When stakes are high:
- invest more evidence collection (M3),
- use structured evaluation (M2),
- validate outcomes (M5).[^1]
References
- Payne, J. W., Bettman, J. R., & Johnson, E. J. (1993). The Adaptive Decision Maker. Cambridge University Press.[source]
- Simon, H. A. (1955). A behavioral model of rational choice. Quarterly Journal of Economics, 69(1), 99–18.[source]