What is hiding hand principle in economics?

June 29, 2018 12:15 am | Updated 12:25 am IST

This refers to the proposition that a person who takes up a task without being completely aware of its level of difficulty may still decide to complete it because it is too late to abandon it. Being unaware of the obstacles that lie in the way of completing a task can thus cause people to complete difficult tasks that they would not otherwise. The idea was proposed by economist Albert Hirschman. It has been criticised by behavioural economists who contend that being unaware of the actual costs of a project can cause people to abandon ongoing projects.

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