Introduction In the realm of decision-making, Second-Order Thought emerges as a crucial mental model deeply rooted in human psychology. It involves thinking beyond the immediate consequences of our actions and considering the higher-order effects and long-term implications. This mental model plays a pivotal role in guiding rational decision-making by accounting for complexity, interdependencies, and unintended […]
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 […]
Introduction In the realm of decision-making, the concept of stochastic processes holds significant relevance. Stochastic processes refer to random sequences of events or phenomena that evolve over time. This mental model explores how our understanding of these processes is anchored in human psychology and its prevalence in our day-to-day lives. By grasping the fundamentals of […]