Survivorship Theory

Survivorship Theory refers to the logical error of focusing only on successful entities while ignoring those that failed. This often skews perceptions and data in various fields, including finance and business. For example, when analyzing successful companies, one might overlook countless others that went bankrupt, leading to an overly optimistic view of opportunities. Recognizing this bias helps in making more informed decisions by considering the full picture, including the failures and challenges that contribute to real-world outcomes. It's a reminder that success is often visible, but failure is not always accounted for.