Exploration-Exploitation Trade-off

The exploration-exploitation trade-off refers to the decision-making challenge of balancing trying new options (exploration) versus sticking with what’s already known to work (exploitation). For example, a business might explore new markets for growth or focus on its current successful products. Exploring risks resources but can uncover better opportunities, while exploiting maximizes short-term gains from familiar choices. Making the right balance helps optimize outcomes over time, whether in learning, business, or personal decisions.