Introduction In the realm of decision-making, there are various mental models that influence how we perceive and evaluate choices. One such model, known as “Deadweight Loss,” reveals the hidden costs and irrationality that can arise from our decision-making processes. This blog post aims to provide a comprehensive understanding of Deadweight Loss, its relevance in decision-making, […]
Introduction In the complex landscape of decision-making, our minds often rely on mental shortcuts and biases that can lead to irrational judgments. One such cognitive bias, the Specialization mental model, plays a significant role in shaping our choices and actions. Specialization refers to the tendency to overvalue a specific area of expertise or knowledge while […]
Introduction In the realm of decision-making, the AD-AS (Aggregate Demand-Aggregate Supply) model serves as a mental framework that helps individuals and groups understand the dynamics between macroeconomic factors and their potential consequences. Grounded in human psychology, the AD-AS model influences our day-to-day lives in a myriad of ways, shaping personal choices, business strategies, and public […]