Introduction In the realm of decision-making, Alder’s Law presents a crucial mental model. Anchored in human psychology, this model refers to the tendency of individuals or groups to make irrational decisions that are contrary to their best interests. Understanding the concept of Alder’s Law is essential for avoiding these pitfalls and making informed choices. In […]
Introduction In the realm of decision-making, the Abduction mental model plays a significant role. Abduction refers to the process of making inferences or forming hypotheses based on limited evidence or incomplete information. It is a mode of reasoning that fills gaps in knowledge by seeking the most plausible explanation. Anchored in human psychology, the Abduction […]
Introduction In the realm of decision-making, the Paradigm Shift mental model holds a significant place. It refers to a fundamental change in the way we perceive and interpret the world, leading to transformative shifts in our beliefs, attitudes, and actions. This mental model is anchored in human psychology and has pervasive implications in our day-to-day […]
Introduction In the vast landscape of decision-making, our minds are often influenced by various cognitive biases and mental traps. One such pervasive cognitive bias is the Historical Wisdom mental model. Historical Wisdom refers to the tendency to rely excessively on past experiences, conventional knowledge, and societal norms when making decisions, rather than thoroughly evaluating the […]
Introduction In the intricate landscape of decision-making, the human mind often resorts to mental shortcuts and biases that can lead to irrational choices. One such mental model that frequently influences our decision-making process is the concept of Decision Trees. Rooted in human psychology, Decision Trees represent a cognitive framework through which individuals evaluate choices, weigh […]
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, […]