Among people who haven't learned probabilistic reasoning, there's a tendency to push the (implicit) probabilities in their reasoning to the extremes; when the only categories available are "will happen", "won't happen", and "might happen", too many things end up in the will/won't buckets.
A similar, subtler thing happens to people who haven't learned the economics concept of elasticity. Some example (fallacious) claims of this type:
This feels like it's in the same reference class as he traditional logical fallacies, and that giving it a name - "zero elasticity fallacy" - might be enough to significantly reduce the rate at which people make it. But it does require a bit more concept-knowledge than most of the traditional fallacies, so, maybe not? What happens when you point this out to someone with no prior microeconomics exposure, and does logical-fallacy branding help with the explanation?
Yeah, I do agree that for the case of traffic, elasticity is pretty close to 1, which importantly doesn't mean building more traffic is a bad idea, it's actually indicative of demand for traffic capacity being really high, meaning marginal value of doing so is likely also really high.
This post is a container for my short-form writing. See this post for meta-level discussion about shortform as an upcoming site feature.