Introduction In the realm of decision-making, humans are not always as rational as they believe themselves to be. Deep-rooted cognitive biases often shape our choices, leading us astray from logical thinking and optimal outcomes. One such bias, the Commitment and Consistency Bias, holds great significance in understanding the human mind’s intricate workings and the factors […]
Introduction In the vast landscape of human decision-making, our minds are subject to various biases and cognitive traps that can lead us astray from rational thinking. One such mental model is the Ratchet Effect, a phenomenon rooted in human psychology that affects our day-to-day lives, personal decisions, business strategies, and even public policy-making. Understanding the […]
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, 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, […]