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 Within the intricate realm of decision-making, the Arbitrage mental model stands as a captivating concept that explores the pursuit of risk-free gains through exploiting price discrepancies. Anchored in human psychology, this model reveals our innate desire for profit and the tendency to make irrational decisions when faced with opportunities that seem too good to […]
Introduction: In the vast landscape of human decision-making, various mental models shape our thoughts and actions. One particularly intriguing model is the Bribery mental model, which elucidates the powerful influence of incentives on our choices. Rooted in human psychology, this model explores how we are susceptible to irrational decision-making when enticed by rewards or inducements. […]
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, […]
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 […]