Tag: Risk Perception

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Learnings Mental Models

Ergodicity: Unveiling the Mental Model Shaping our Decision-Making

Introduction In the realm of decision-making, our thought processes are often influenced by various mental models. One such intriguing concept is Ergodicity, a mental model deeply rooted in human psychology. Ergodicity refers to the assumption that time-averaged behavior in a system is representative of individual behavior within that system. This model holds significant relevance in […]

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Learnings Mental Models

The Moral Hazard Mental Model: A Deep Dive into Decision-Making

Moral Hazard, Mental Model, Decision-Making, Human Psychology, Risk Perception,Insurance, Business Scenarios, Public Policy, Optimism Bias, Information Asymmetry, Objective Decision-Making

The world of decision-making is complex, often influenced by a myriad of factors. One such influential factor is the ‘Moral Hazard’ mental model. This model, deeply rooted in human psychology, plays a significant role in our day-to-day lives, shaping our choices and actions. Understanding Moral Hazard Moral Hazard refers to a situation where an individual […]