Introduction In the realm of decision-making, our minds are prone to making associations and drawing correlations that may not actually exist. One such mental model that sheds light on this phenomenon is the Berkson Paradox. This paradox describes a situation where the correlation between two unrelated factors appears to be stronger than it actually is […]
Introduction In the realm of decision-making, our minds can play tricks on us, leading to biased and flawed judgments. One mental model that sheds light on this phenomenon is Selection Bias. This bias occurs when we draw conclusions or make decisions based on a non-representative sample of data, inadvertently excluding certain individuals or factors from […]
Introduction In the realm of decision-making, numerous mental models help us navigate the complexities of choices and outcomes. One such model that profoundly impacts our judgments is “Velocity.” Derived from physics, the Velocity mental model refers to the tendency of individuals or groups to make quick, impulsive decisions without thoroughly considering the consequences. This blog […]
Introduction In the realm of decision-making, there exists a mental model known as the Tragedy of the Commons. Coined by ecologist Garrett Hardin in 1968, this concept refers to a situation where individuals, driven by self-interest, deplete or exploit a shared resource to the detriment of the collective. It highlights how rational individuals, when acting […]
Introduction In the realm of decision-making, we often rely on mental models—cognitive frameworks that help us understand and interpret information. One such mental model, known as Okrent’s Law, sheds light on the irrational tendencies that can plague our choices. Coined by Daniel Okrent, the law captures the common occurrence of individuals or groups making decisions […]
Introduction The Network Effects mental model revolves around the idea that the value and utility of a product, service, or decision increase as more individuals adopt or participate in it. This concept plays a significant role in decision-making processes, shaping our choices and influencing outcomes. Anchored in human psychology, Network Effects are prevalent in our […]