Analysis Paralysis

Analysis paralysis happens when over-analysis of relevant information or over-thinking of possible consequences prevents one from making a decision.

Analysis paralysis can sometimes delay decisions and thus lead to forfeited opportunities.

Additionally, analysis paralysis hampers productivity. Destructive optimisation happens when the value derived choosing the optimal strategy is less than the cost needed to discover the optimal strategy; and the Paradox of Choice explains how more choices does’t lead to better result. Using a computer scheduler’s approach to make decisions might be a solution.

One instance where analysis paralysis take place is the optimal stopping problem, which has been well studied by mathematicians and can be solved by the 37% rule.

Also, over-thinking can sometimes lead to bad decisions.

References:

1. https://www.investopedia.com/terms/a/analysisparalysis.asp
2. https://blog.doist.com/analysis-paralysis-productivity/