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, our thought processes are influenced by various mental models that shape our perception of reality. One such mental model that frequently leads to irrational decision-making is the Parity Condition. Rooted in human psychology, the Parity Condition is a cognitive bias where individuals or groups base their judgments on superficial […]
Introduction In the vast ocean of decision-making, we often find ourselves riding the waves of various mental models. One such model, known as “Surfing,” captures the essence of a psychological bias that affects our choices and actions. Surfing refers to the tendency to make decisions based on the current circumstances, rather than considering the long-term […]
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, it’s all too easy to fall into the trap of bottlenecks. The bottlenecks mental model refers to the cognitive bias where individuals or groups disproportionately focus on specific factors, leading to irrational decision-making. This blog post aims to shed light on the concept of bottlenecks, its relevance in decision-making […]
Introduction In the realm of decision-making, the human mind is prone to biases and fallacies that can lead us astray. One such mental model that profoundly impacts our choices is the concept of Moral Hazard. Coined in the field of economics, Moral Hazard refers to the phenomenon where individuals or groups, protected from the negative […]