Winning (losing) by losing (winning): The power of expectations
aswathdamodaran.substack.com
If you are a baseball fan, I am sure that you know that both the New York Yankees and the Baltimore Orioles made the playoffs last week. While there was some celebration in New York on the news, it was nothing compared to the jubilation in Baltimore. The reason is not hard to fathom. In the last 16 years, the Yankees have made the playoffs in all but one, and with their payroll and heritage, Yankee fans view the playoffs as an entitlement, rather than a bonus. For Baltimore fans, whose team has not had a winning record (forget about making the playoffs) in a long time and was not expected to have one this year, it is a hugely positive surprise. It reinforces the message that it is now how well you do, but how well you do, relative to expectations, that determines the response.
Winning (losing) by losing (winning): The power of expectations
Winning (losing) by losing (winning): The…
Winning (losing) by losing (winning): The power of expectations
If you are a baseball fan, I am sure that you know that both the New York Yankees and the Baltimore Orioles made the playoffs last week. While there was some celebration in New York on the news, it was nothing compared to the jubilation in Baltimore. The reason is not hard to fathom. In the last 16 years, the Yankees have made the playoffs in all but one, and with their payroll and heritage, Yankee fans view the playoffs as an entitlement, rather than a bonus. For Baltimore fans, whose team has not had a winning record (forget about making the playoffs) in a long time and was not expected to have one this year, it is a hugely positive surprise. It reinforces the message that it is now how well you do, but how well you do, relative to expectations, that determines the response.