misallocation

American  

[mis-al-uh-kay-shuhn] / ˌmɪsˌæl əˈkeɪ ʃən /

noun

plural

misallocations

1. the act of improperly allocating something, such as funds, labor, or other resources.

---

Example Sentences

This caused a misallocation of capital among commercial banks, as they were forced to extend duration to make a return, and reduced their profitability because many banks were unwilling or unable to pass negative deposit costs on to customers.

From MarketWatch

But every December we collectively suspend optimization and replace it with a ritual that specializes in misallocation.

From The Wall Street Journal

We tolerate misallocation because we are purchasing something other than objects: reassurance, attention, belonging—a ritualized way of saying you matter to me and I am willing to incur a cost to prove it.

From The Wall Street Journal

“There is just massive misallocation that runs through the economy in multiple dimensions,” said Loren Brandt, an economist at the University of Toronto.

From The Wall Street Journal

Some analysts warn that AI-related misallocation of capital could exceed $1 trillion, but they’re ultimately measuring the wrong thing.

From MarketWatch