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> a $1m project with expected value of $1.1m vs $1m project with expected value of $50m Expected utility fail. Dollars are fungible; it is exactly equally imp
by Eliezer 17y ago
> a $1m project with expected value of $1.1m vs $1m project with expected value of $50m
Expected utility fail. Dollars are fungible; it is exactly equally important to save money on both projects, but on the second project, we are much more concerned with percentage losses of expected output value as a function of cost-saving attempts.
- billswift 17y agoHis point was to choose projects more worth doing, that is with a higher expected return, INSTEAD of trying to pinch pennies to get a return from a less useful/valuable product. Or at least that's the way I read that section.
- bsaunder 17y ago"To my mind, the question that’s much more important than how to control a software project is, why on earth are we doing so many projects that deliver such marginal value?" I was really hoping for more insights to this in the second half, but they never came.