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Learnings Mental Models

Understanding Moral Hazard: Navigating the Pitfalls of Decision-Making

Introduction In the realm of decision-making, the human mind is prone to biases and fallacies that can lead us astray. One such mental model that profoundly impacts our choices is the concept of Moral Hazard. Coined in the field of economics, Moral Hazard refers to the phenomenon where individuals or groups, protected from the negative […]