Introduction In the realm of decision-making, it is crucial to understand the boundaries and constraints that shape our choices. Planck’s Principle, derived from quantum physics, offers valuable insights into decision-making processes by emphasizing the existence of minimum thresholds and the limits of precision. Anchored in human psychology, this mental model provides a framework to recognize […]
Introduction In the realm of decision-making, there are various mental models that influence how we perceive and evaluate choices. One such model, known as “Deadweight Loss,” reveals the hidden costs and irrationality that can arise from our decision-making processes. This blog post aims to provide a comprehensive understanding of Deadweight Loss, its relevance in decision-making, […]
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 […]