The Decision Education Podcast

Episode 014: Analytics and Adaptation with Daryl Morey

Dec 8, 2021
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INSIGHT

Three Is Often More Than Two

  • Three-pointers had much higher expected value from the start because 3x makes% often exceeded 2x makes% by a large margin.
  • Coaching culture and psychology delayed adoption despite the clear mathematical advantage.
INSIGHT

Psychology Blocks EV Decisions

  • Loss aversion and fear of being singled out kept teams from adopting higher-variance, higher-EV strategies like more threes.
  • Endgame win-probability choices also justify rejecting threes in specific late-game contexts.
ADVICE

Set Expectation For Calculated Failure

  • When you adopt an aggressive, variance-raising strategy, set expectations that you will fail often and commit collectively.
  • Frame failures as part of a plan to maximize your chance to be the single best team among competitors.
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