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The seductiveness of single-metric decisions
- lordnacho 7y agoThere's a lot of relevant info in economics about this. Two main things come to mind: - There's no way to create a single metric from different things without some sort of tradeoff curve being implied. This has all sorts of implications when you look at utility functions. You might even find that your setup violates some of the requirements (like transitivity). - Even if you do have one metric, you don't have one metric. Why are you making a decision in the first place? Unless it's trivial, it's because you're uncertain about the future. You are making a decision under uncertainty, which there's also a lot written about. So your high ROI might be an average with some error bars around it, while the low ROI has a different variation. Now you're back to tradeoffs again.