Introduction In the realm of decision-making, numerous mental models help us navigate the complexities of choices and outcomes. One such model that profoundly impacts our judgments is “Velocity.” Derived from physics, the Velocity mental model refers to the tendency of individuals or groups to make quick, impulsive decisions without thoroughly considering the consequences. This blog […]
Introduction The Network Effects mental model revolves around the idea that the value and utility of a product, service, or decision increase as more individuals adopt or participate in it. This concept plays a significant role in decision-making processes, shaping our choices and influencing outcomes. Anchored in human psychology, Network Effects are prevalent in our […]
Introduction The Margin of Safety mental model revolves around the principle of building a buffer or cushion in decision-making processes. It emphasizes the importance of leaving room for error or unforeseen circumstances to protect against potential risks. Anchored in human psychology, this model finds prevalence in various aspects of our lives. Understanding and applying the […]
Introduction Algorithms, as a mental model, refer to the inherent human tendency to rely on predefined patterns or formulas to make decisions. Rooted in human psychology, this model influences our day-to-day lives and decision-making processes. Understanding algorithms is crucial as it sheds light on how we sometimes fall into the trap of making irrational decisions […]
Introduction In the realm of decision-making, our pursuit of rewards and outcomes is often accompanied by a phenomenon known as the Law of Diminishing Reward. This mental model suggests that as we continue to invest time, effort, or resources into a particular endeavor, the incremental returns diminish over time. Understanding this concept is crucial in […]
Introduction In the realm of decision-making, the human mind often grapples with limited time, resources, and attention. In such circumstances, understanding and applying the Pareto Principle can be a valuable mental model. The Pareto Principle, also known as the 80/20 rule, states that roughly 80% of the effects come from 20% of the causes. This […]