Introduction In the realm of decision-making, our past investments often hold a powerful influence over our choices. One cognitive bias that captures this phenomenon is the Sunk Cost Fallacy. The Sunk Cost Fallacy refers to the tendency to continue investing in a failing endeavor, solely due to the resources already committed, even when it no […]
Introduction In the realm of decision-making, the Evolutionary Stable Strategy (ESS) stands as a powerful mental model that explores how individuals and groups make choices to maximize their long-term success. Rooted in evolutionary biology, the ESS concept has found relevance in various aspects of human psychology and is prevalent in our day-to-day lives. By understanding […]
Introduction In the complex landscape of decision-making, we often find ourselves facing a psychological phenomenon known as the Winner’s Curse. This mental model refers to a situation in which the winner of an auction or competitive bidding process tends to overpay or overvalue the object of desire. Whether it’s a personal life decision, a business […]