Introduction In the realm of decision-making, the AD-AS (Aggregate Demand-Aggregate Supply) model serves as a mental framework that helps individuals and groups understand the dynamics between macroeconomic factors and their potential consequences. Grounded in human psychology, the AD-AS model influences our day-to-day lives in a myriad of ways, shaping personal choices, business strategies, and public […]
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 […]