Saturday, April 08, 2006

Chicken Little Bumps into Mr. Ostrich Head

The concept of Chicken Little (CL) confronting Mr. Ostrich Head (MOH) comes from Anthropik here

Not discussed is the risk v. reward equation. Let's say there are equal chances that CL and MOH are right. If MOH is right and we panic & spend money trying to fix a problem that is not there, well then we are out of that amount of money. If CL is right and we DON'T panic & spend money trying to fix the problem, then we pay the price of the sky falling on our head. Which is worse?

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