Article PDF: 3.1 Strategic Economics

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Six rules describing the general concept of cost and benefits of positioning.

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This article explains how Sun Tzu's strategy depends on certain concepts of economics, the rules for properly balancing costs and rewards. One of the most destructive human tendencies is our ability to mentally separate the advantages of a position from its disadvantages. The wost aspect of this tendency making decision on the basis of benefits without concerning ourselves with costs. Decisions have consequences and all decisions have costs. Even deciding not to act has costs, the costs of missing an opportunity. Experience has shown that the most costly decisions of all are those that focus on only benefits.