Introduction The Base Rates mental model is a powerful tool that emphasizes the importance of incorporating relevant statistical information when making decisions. It recognizes that human psychology often overlooks base rates, the general prevalence of events in a population, in favor of anecdotal or vivid information. By understanding and considering base rates, we can make […]
Introduction In the realm of decision-making, the concept of Foundational Species offers valuable insights into how individuals often rely heavily on initial information or reference points when making judgments or choices. This mental model, rooted in human psychology, can have significant implications for decision-making processes in various aspects of our lives. Understanding the Foundational Species […]
Introduction In the intricate realm of decision-making, our minds often rely on mental shortcuts to simplify complex tasks. One such cognitive shortcut is the Representativeness Heuristic, which guides our judgments and decisions based on how closely an event or person resembles our mental prototype or stereotype. In this blog post, we will explore the Representativeness […]
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 […]