Introduction The Denomination Effect is a cognitive bias that occurs when people assign different values to money based on its physical denomination or label, rather than its actual purchasing power. This mental model has significant relevance in decision-making processes, as it affects how individuals perceive and make choices related to money. Anchored in human psychology, […]
Introduction Clustering Illusions refer to the cognitive biases that lead us to perceive patterns or clusters in random or unrelated data. Anchored in human psychology, this mental model significantly influences decision-making processes in our day-to-day lives. Understanding the concept of Clustering Illusions is crucial as it sheds light on the fallacies we may fall victim […]
Introduction In the realm of decision making, humans are prone to various cognitive biases that can lead to irrational judgments. One such bias is the Texas Sharpshooter Fallacy, a mental model rooted in human psychology that significantly impacts our day-to-day lives. This fallacy involves drawing false conclusions by cherry-picking data points after the fact, creating […]
Introduction In the realm of decision-making, human psychology often plays a significant role, leading to biases and fallacies that hinder rational choices. One such cognitive trap is known as the “Buridan Ass,” which refers to the inability to make a decision when faced with two equally appealing options. This mental model takes its name from […]
Introduction In the complex landscape of decision-making, our minds often rely on mental shortcuts known as cognitive biases. These biases, while serving as convenient tools for processing information, can inadvertently lead us astray. One such cognitive bias that frequently affects our judgment is the First-Conclusion Bias. This blog post aims to shed light on this […]
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 […]