Introduction Within the intricate realm of decision-making, the Arbitrage mental model stands as a captivating concept that explores the pursuit of risk-free gains through exploiting price discrepancies. Anchored in human psychology, this model reveals our innate desire for profit and the tendency to make irrational decisions when faced with opportunities that seem too good to […]
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 […]
In the realm of decision-making, the ‘Permutations and Combinations’ mental model plays a pivotal role. This model, deeply rooted in human psychology, influences our choices and actions in our day-to-day lives. Understanding Permutations and Combinations Permutations and Combinations are mathematical concepts that deal with counting possible outcomes. Permutations refer to the arrangement of items where […]