Introduction In the realm of decision-making, a phenomenon known as Founder’s Syndrome holds significant influence. Founder’s Syndrome refers to the psychological and behavioral patterns that can arise when the founder or key individuals in an organization, relationship, or even personal life become entrenched in their ideas and resist change or differing perspectives. This mental model, […]
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 In the realm of decision-making, our thought processes are influenced by various mental models that shape our perception of reality. One such mental model that frequently leads to irrational decision-making is the Parity Condition. Rooted in human psychology, the Parity Condition is a cognitive bias where individuals or groups base their judgments on superficial […]
Introduction In the complex landscape of decision-making, our minds often resort to mental shortcuts and biases that can lead us astray. One such mental model that profoundly influences our choices is the Controlling Centre. Derived from human psychology, this mental model refers to our tendency to believe that we have complete control over the outcomes […]
Introduction In the realm of decision-making, our minds are subject to various cognitive biases and fallacies that can often lead us astray. One such powerful mental model is the concept of switching cost. Switching cost refers to the perceived or real expenses, both tangible and intangible, associated with changing from one option to another. These […]