Feedback loop
Risk & psychologyThe link between a decision and information about whether it was correct.
In plain terms
Markets give delayed, noisy feedback, which is why experience alone teaches slowly and often wrongly.
Every term is defined twice: once the way a filing would put it, and once the way somebody would explain it to you across a table. The second one is usually the one that sticks.
Showing 1 term
The link between a decision and information about whether it was correct.
Markets give delayed, noisy feedback, which is why experience alone teaches slowly and often wrongly.