Introduction In the realm of decision-making, our choices are often shaped by the past. Path dependence, a mental model rooted in history, highlights how previous decisions or events can profoundly impact present and future choices. Defined as the idea that the options available to us are influenced by the decisions and circumstances that have come […]
Introduction Murphy’s Law, often stated as “Anything that can go wrong, will go wrong,” is a well-known mental model that reflects the pervasive nature of uncertainty in our lives. This concept acknowledges the inevitability of unforeseen events and their potential to disrupt our plans and decisions. Anchored in human psychology, Murphy’s Law is highly relevant […]
Introduction In the realm of decision-making, the concept of First-Movers and Last-Movers Advantage plays a significant role in shaping our choices. This mental model revolves around the idea that being the first to enter a market or adopting a particular strategy can provide a competitive advantage. Conversely, there are situations where being a late entrant […]
Introduction In the realm of decision-making, the 3-6-3 Rule stands as a mental model that can significantly impact our choices. This rule refers to a simplified approach often used in banking and financial institutions, where depositors are promised a 3% interest rate, loans are provided at 6%, and bankers hit the golf course at 3 […]
Introduction In the complex landscape of decision-making, our minds often rely on mental shortcuts and biases that can lead us astray. One such cognitive bias, deeply rooted in human psychology, is the Comparative Advantage mental model. Originally an economic concept, Comparative advantage refers to the ability of individuals, businesses, or nations to produce goods or […]