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, 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 […]
Introduction In the realm of decision-making, the Nash Equilibrium mental model plays a significant role. Coined after the brilliant mathematician John Nash, this concept seeks to explain a common phenomenon: individuals or groups, driven by self-interest, often make choices that are contrary to what may seem rational at first glance. Nash Equilibrium is not only […]
In the realm of decision-making, the ‘Permutations and Combinations’ mental model plays a pivotal role. This model, deeply rooted in human psychology, influences our choices and actions in our day-to-day lives. Understanding Permutations and Combinations Permutations and Combinations are mathematical concepts that deal with counting possible outcomes. Permutations refer to the arrangement of items where […]