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Stakes-Accuracy Correlation Model

Users' willingness to pay for accuracy increases exponentially with the financial, social, or time stakes involved in getting wrong information

Decision Rule

When stakes are high (money, reputation, health), users will pay premium for accuracy and won't accept 'good enough' free alternatives

How It Works

High stakes create anxiety about wrong decisions, making users willing to pay for confidence and accuracy rather than risk costly mistakes

Failure Modes

Overestimating stakes in low-consequence decisions

Building for high-stakes situations where liability exceeds revenue potential

Underdelivering accuracy when stakes are genuinely high

Targeting high-stakes niches without domain expertise

Example Decision

Vinyl collector deciding between $10 and $1000 record values has high financial stakes, justifying premium pricing for accurate valuation app

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