Introduction In the realm of decision-making, there exists a mental model known as Gresham’s Law. Coined by economist Sir Thomas Gresham in the 16th century, this concept states that bad money tends to drive out good money from circulation. Gresham’s Law highlights how individuals and societies, driven by self-interest, often prioritize inferior or counterfeit currency […]
Introduction In the realm of decision-making, there exists a mental model known as the Tragedy of the Commons. Coined by ecologist Garrett Hardin in 1968, this concept refers to a situation where individuals, driven by self-interest, deplete or exploit a shared resource to the detriment of the collective. It highlights how rational individuals, when acting […]
Introduction In our daily lives, we often strive to be polite and considerate towards others. However, this natural inclination towards courtesy can sometimes lead us astray when it comes to making rational decisions. This phenomenon, known as the Courtesy Bias, is a mental model deeply rooted in human psychology. It influences our decision-making processes by […]