For The Talented Underachiever

Tag: psychology

Understanding the AD-AS Model: Avoiding the Pitfalls of Irrational Decision-making

Post author By Patrick
Post date June 7, 2023
No Comments on Understanding the AD-AS Model: Avoiding the Pitfalls of Irrational Decision-making

Introduction In the realm of decision-making, the AD-AS (Aggregate Demand-Aggregate Supply) model serves as a mental framework that helps individuals and groups understand the dynamics between macroeconomic factors and their potential consequences. Grounded in human psychology, the AD-AS model influences our day-to-day lives in a myriad of ways, shaping personal choices, business strategies, and public […]

Tags AD-AS Model, aggregate demand, aggregate supply, anchoring bias, Availability Heuristic, biases, business strategies, Cognitive Biases, confirmation bias, critical thinking, Decision-Making, economic models, irrational decision-making, mental models, Objective Decision-Making, Personal Life Decisions, psychology, Public Policy Making

Learnings Mental Models

The Comparative Advantage Mental Model: Unveiling the Fallacy of Biased Decision-Making

Post author By Patrick
Post date June 7, 2023
No Comments on The Comparative Advantage Mental Model: Unveiling the Fallacy of Biased 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 […]

Tags anchored bias, biases, business strategies, cognitive bias, Comparative advantage, Decision-Making, flexibility, Mental Model, opportunity cost, personal choices, psychology, Public Policy, rational decision-making, self-awareness, sunk cost fallacy., trade-offs