1. Is the value your giving up by making a decision
a. Absence is an inability blindness to pay attention to what is not present
i. Diminishing Returns
Time value of money
By Martin De Azpilcueta 16th century
1. A way to make decisions
a. Opportunity cost
b. Next best alternative
c. On the max you should pay for abusiveness that earns present value
Compounding-Accumulation over time
o Create a positive feedback loop.
Leverage-using borrowed money to magnify retention gains
A form of financial amplification for gains and losses.