Introduction In the realm of decision-making, our minds are often subject to cognitive biases and fallacies that lead us astray from rationality. One such phenomenon is the Blitzkrieg mental model, which refers to the tendency of individuals or groups to make impulsive, irrational decisions without considering the long-term consequences. Derived from the military strategy known […]
Introduction In the complex world we inhabit, decision making is an inherent part of our daily lives. However, uncertainty often lurks in the shadows, shaping the choices we make and the outcomes we experience. One such form of uncertainty is known as Knightian Uncertainty, named after economist Frank Knight, who first introduced the concept in […]
Introduction In our quest to make rational decisions, we often fall prey to a cognitive trap known as the Lucid Fallacy. This mental model revolves around the misconception that our thoughts and judgments are always clear, logical, and accurate. Anchored in human psychology, the Lucid Fallacy can lead us astray by giving us a false […]
Introduction In the realm of decision-making, understanding the concept of transaction costs is crucial for making rational choices that align with our best interests. Transaction costs encompass the various expenses, both tangible and intangible, incurred when engaging in an exchange or transaction. While often associated with economics, transaction costs have significant implications for decision-making across […]
Introduction The Creative Destruction mental model is a fascinating concept that plays a significant role in our decision-making processes. It is deeply rooted in human psychology and is prevalent in our day-to-day lives. This mental model is a tool that helps us understand the cycle of innovation and obsolescence, where new ideas, technologies, and processes […]