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 […]
Introduction In the realm of decision-making, the Nash Equilibrium mental model plays a significant role. Coined after the brilliant mathematician John Nash, this concept seeks to explain a common phenomenon: individuals or groups, driven by self-interest, often make choices that are contrary to what may seem rational at first glance. Nash Equilibrium is not only […]
Introduction In the complex landscape of decision-making, our minds often rely on mental shortcuts and biases that can lead us astray. One such cognitive bias, deeply rooted in human psychology, is the Comparative Advantage mental model. Originally an economic concept, Comparative advantage refers to the ability of individuals, businesses, or nations to produce goods or […]