Introduction In the realm of decision-making, the concept of stochastic processes holds significant relevance. Stochastic processes refer to random sequences of events or phenomena that evolve over time. This mental model explores how our understanding of these processes is anchored in human psychology and its prevalence in our day-to-day lives. By grasping the fundamentals of […]
Introduction In our pursuit of making rational decisions, we often overlook the role that randomness plays in shaping our choices. Randomness refers to the unpredictable nature of events or outcomes that lack any discernible pattern or order. While we strive to find meaning and structure in the world around us, randomness challenges our perceptions and […]
Introduction In the realm of decision-making, we often rely on mental models—cognitive frameworks that help us understand and interpret information. One such mental model, known as Okrent’s Law, sheds light on the irrational tendencies that can plague our choices. Coined by Daniel Okrent, the law captures the common occurrence of individuals or groups making decisions […]
Introduction In the realm of decision-making, the human mind is prone to biases and logical fallacies that can lead us astray from sound reasoning. One such cognitive trap is known as the “Three men make a Tiger” mental model. Derived from an ancient Chinese proverb, this concept highlights the tendency of individuals or groups to […]
Introduction In the realm of decision-making, the human mind is both a powerful tool and a complex apparatus. It is susceptible to various biases and fallacies that often hinder our ability to make rational choices. One such cognitive pitfall is the Iron Law of Civilization 3, a mental model deeply rooted in human psychology that […]
Introduction In the realm of decision-making, mental models serve as cognitive frameworks that shape our understanding of the world and guide our choices. One such mental model, the Cancer Surgery Formula, has gained prominence due to its relevance in various contexts. This formula refers to a biased decision-making pattern where individuals or groups prioritize immediate […]