For over 11 years I have posted how asymmetric damage functions affect my behavior. Keep in mind that many situations with asymmetric loss function: Inequality is that one side of the error costs much less than the other side of the error.
I encountered this situation while shopping in Kenora, Ontario on Saturday evening for food at my cottage in Minaki. Minaki is a good 40 minute one way from Kenora. So if I bought very little or didn’t buy anything because it is less likely to be used, the damage of filling it up by driving in Kenora is much higher. Gasoline consumption rounding error. The main cost is my time. I only get less than 2.5 weeks in my cottage each year and so an extra trip to Kenora takes up very valuable time at the cottage. I can use the time for swimming, which I love even though the water temperature is around 63 Fahrenheit, meeting friends, reading and sleeping on the porch and listening to wildlife.
I thought I might have enough bacon but I wasn’t sure, so I bought another package. I could buy 1.5 pounds of ground beef but, to stay safe, I bought more than 2 pounds. They are about 5 or 6 examples 2. I am a fairly good planner and so my guess is that at the end of the trip I will not have more than US $ 40 of extra food. Also, since I love all my neighbors (oh, I’m in Canada, “neighbors”) a lot, $ 40 is an exorbitant value to me because of the net cost because most of it will be useful to my neighbors.
The picture above shows me in the water of my cottage. The water has been high this year since I started going to the cottage in 1951. So I’m walking to the gangplank on the way to the dock.