Source: EconLog
by David Hebert
“For your decisions, there are three options: you can get the decision right or you can get it wrong. ‘But Dave,’ you say, ‘that’s only two options!’ In the following nuance lies the heart of this piece: there are two ways in which you can be wrong. You can act when you shouldn’t have or you can fail to act when you should have. Getting things right all the time is not possible. So which type of mistake are you more likely to guard against? It depends on which one will get you fired. In most government settings, the answer is biased in particular (and predictable) ways.” (05/19/26)