Analysis paralysis or paralysis by analysis is the state of over-analyzing (or over-thinking) a situation so that a decision or action is never taken, in effect paralyzing the outcome. A decision can be treated as over-complicated, with too many detailed options, so that a choice is never made, rather than try something and change if a major problem arises. A person might be seeking the optimal or "perfect" solution upfront, and fear making any decision which could lead to erroneous results, while on the way to a better solution.
The phrase describes a situation in which the opportunity cost of decision analysis exceeds the benefits that could be gained by enacting some decision, or an informal or non-deterministic situation where the sheer quantity of analysis overwhelms the decision-making process itself, thus preventing a decision. The phrase applies to any situation where analysis may be applied to help make a decision and may be a dysfunctional element of organizational behavior. This is often phrased as paralysis by analysis, in contrast to extinct by instinct (making a fatal decision based on hasty judgment or a gut-reaction).
The basic idea has been expressed through narrative a number of times. In one "Aesop's fable" that is recorded even before Aesop's time, The Fox and the Cat, the fox boasts of "hundreds of ways of escaping" while the cat has "only one". When they hear the hounds approaching, the cat scampers up a tree while "the fox in his confusion was caught up by the hounds". The fable ends with the moral, "Better one safe way than a hundred on which you cannot reckon". Related concepts are expressed by the Centipede's dilemma, how unconscious activity is disrupted by conscious thought of it, and by the tale of Buridan's ass, a paradox of rational decision with equal options.
In Shakespeare's Hamlet, the main character, Prince Hamlet, is often said to have a mortal flaw of thinking too much, such that his youth and vital energy are "sicklied o'er with the pale cast of thought". Neema Parvini explores some of Hamlet's key decisions in the chapter "‘And Reason Panders Will’: Another Look at Hamlet’s Analysis Paralysis".