Introduction In the realm of decision-making, our minds often resort to cognitive shortcuts and biases that can lead us astray. One such mental model that frequently impacts our choices is the Replication mental model. Replication refers to our tendency to prefer familiar options or situations over new or unfamiliar ones. It is deeply rooted in […]
Introduction Moore’s Law, named after Intel co-founder Gordon Moore, describes the observation that the number of transistors on a microchip doubles approximately every two years. While initially a principle guiding the development of computer hardware, Moore’s Law has transcended its technological origins to become a mental model with broader implications. Understanding this model is crucial […]
Introduction In the realm of decision-making, there exists a mental model known as Gresham’s Law. Coined by economist Sir Thomas Gresham in the 16th century, this concept states that bad money tends to drive out good money from circulation. Gresham’s Law highlights how individuals and societies, driven by self-interest, often prioritize inferior or counterfeit currency […]
Introduction In the realm of decision-making, humans often find themselves swayed by a range of cognitive biases that lead to irrational choices. One such mental model, the Fisher Effect, holds significant relevance in understanding the intricacies of decision-making processes. The Fisher Effect refers to the tendency of individuals to mistakenly believe that real returns on […]
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 realm of decision-making, our minds often rely on mental shortcuts and biases that can lead us astray. One such cognitive tool that profoundly impacts our choices is the Utility mental model. Rooted in human psychology, Utility plays a significant role in shaping our decisions and can have far-reaching consequences for individuals, businesses, […]