Introduction In the realm of decision-making, our minds are often subject to cognitive biases and heuristics that can lead us astray. One such powerful mental model is known as “Mr. Market.” Coined by Benjamin Graham, an influential investor and economist, the concept of Mr. Market revolves around the idea that individuals and groups often make […]
Introduction In the realm of decision-making, our minds are constantly influenced by various mental models that shape our perceptions and judgments. One such powerful mental model is “scarcity,” which refers to the fundamental condition of limited resources. Understanding and recognizing the scarcity mental model is crucial as it plays a significant role in shaping our […]
Introduction In the complex landscape of decision-making, our minds often resort to mental shortcuts and biases that can lead us astray. One such mental model that profoundly influences our choices is the Controlling Centre. Derived from human psychology, this mental model refers to our tendency to believe that we have complete control over the outcomes […]
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 realm of decision-making, our minds are subject to various cognitive biases and fallacies that can often lead us astray. One such powerful mental model is the concept of switching cost. Switching cost refers to the perceived or real expenses, both tangible and intangible, associated with changing from one option to another. These […]
Introduction In the realm of decision-making, there exists a cognitive bias known as rent-seeking that often leads individuals and groups astray, prompting them to make choices that run contrary to their own best interests. Rooted in human psychology, rent-seeking refers to the pursuit of economic gain through non-productive activities, such as manipulating regulations, securing subsidies, […]