trade-off

TRAYD-off /ˈtreɪd ɒf/
nounB2GMATSAT
businesseconomicsgeneral

A balance achieved between two desirable but incompatible features; a compromise where you give up one thing to get another.

Implies a necessary sacrifice; you cannot have both things at their maximum value.

The story behind the word. A relatively modern term that gained popularity in the 1960s within economics and engineering to describe the 'trading' of one benefit for another.

Word relationships

  • compromise: Compromise often implies both sides giving up something; trade-off is more about the structural balance between two options.
  • win-win: A situation where no sacrifice is required and both objectives are fully met.

Commonly confused with

  • opportunity cost: Opportunity cost is the value of what you lose; trade-off is the act of balancing the two choices.

Collocations

  • inevitable trade-off
  • economic trade-off
  • classic trade-off
  • weigh the trade-offs

Example sentences

  • "There is a significant trade-off between the laptop's powerful performance and its battery life." Technology design
  • "The city council faced a trade-off between preserving historic buildings and creating modern affordable housing." Urban planning

Memory hook

You TRADE one thing OFF the list to keep another. Give some to get some.

When not to use

Not used for a simple exchange of equal goods (that's just a 'trade'). It must involve a loss of one quality for the gain of another.

Fun facts

  • In biology, a trade-off occurs when an organism increases its investment in one trait (like growth) at the expense of another (like reproduction).

Related words

yield, concede

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