Base120 · Inversion
Counterfactual Negation
Imagine outcomes if key decision had been reversed
When to use
"Use when evaluating a decision that has already been made. Imagine the opposite decision was taken and compare the projected outcomes. Counterfactuals reveal whether the decision was good or merely safe."
Example
"A company chose to build in-house instead of buying. Counterfactual — if they had bought, they would have saved 6 months of engineering time and shipped 2 quarters earlier. The counterfactual reveals the build decision cost them market timing, not just engineering time."
Common misuse
"Constructing counterfactuals with perfect hindsight — assuming you would have made the optimal choice in the counterfactual scenario. The counterfactual must use the information available at the time, not what is known now."