Introduction In our daily lives, we constantly make decisions based on the perceived availability and desirability of goods, services, and resources. The mental model of Demand and Supply plays a crucial role in shaping these decisions. Originating from the field of economics, Demand and Supply is a fundamental concept that explains the relationship between the […]
Introduction In the realm of decision-making, our minds often rely on mental shortcuts and biases that can lead us astray. One such cognitive tool that profoundly impacts our choices is the Utility mental model. Rooted in human psychology, Utility plays a significant role in shaping our decisions and can have far-reaching consequences for individuals, businesses, […]
Introduction In the realm of decision-making, our minds are subject to various cognitive biases and fallacies that can often lead us astray. One such powerful mental model is the concept of switching cost. Switching cost refers to the perceived or real expenses, both tangible and intangible, associated with changing from one option to another. These […]
Introduction In the realm of decision-making, there exists a cognitive bias known as rent-seeking that often leads individuals and groups astray, prompting them to make choices that run contrary to their own best interests. Rooted in human psychology, rent-seeking refers to the pursuit of economic gain through non-productive activities, such as manipulating regulations, securing subsidies, […]
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 […]
Introduction The Creative Destruction mental model is a fascinating concept that plays a significant role in our decision-making processes. It is deeply rooted in human psychology and is prevalent in our day-to-day lives. This mental model is a tool that helps us understand the cycle of innovation and obsolescence, where new ideas, technologies, and processes […]