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Maximizing Utility vs Maximizing Efficiency

August 19th, 2015 by dimpledbrain

An interesting thought that has occurred to me recently is a simple decision tree model:

What are we maximizing for?

  1. Efficiency – outsource wherever possible
  2. Utility (pleasure) – DIY

The concept seems simple but few people practise this or even understand this.

E.g. should this fall under (1) or (2)

  • replying emails
  • shopping with wife/ves
  • meeting with friends/families

You get the drill.

It appears to me that we are doing more and more of (a) maximizing efficiency to the point where we confuse it with maximizing utilities. Akin to becoming a walking zombie in this world.


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