Pitfalls of a Combination of Short Time Horizon, Not Looking Far Enough Around You and Fear of Facing Reality

Abstract

This combination of limitations is described in the archetypes growth and underinvestment and tragedy of the commons. The central theme of growth and underinvestment is waiting for certainties to emerge, before investing in existing activities. However, if you wait until you have more certainty by carrying out additional analyses or wait for trends to develop; you will miss an opportunity for growth. The archetype tragedy of the commons stands for the situation where a common resource is used and needed by everybody but nobody feels responsible for it. And at the end of the day the resource is depleted. The typical reaction would be: “Why should I refrain if others don’t do it either?”