Introduction In the realm of decision-making, the Semmelweis Effect stands as a compelling mental model that sheds light on the propensity of individuals and groups to reject new information or ideas that challenge their existing beliefs or practices. Coined after the Hungarian physician Ignaz Semmelweis, this phenomenon captures the tendency to dismiss valuable insights due […]
Introduction In our daily lives, we often encounter decisions that vary in complexity and difficulty. From personal choices to business decisions and public policy-making, our ability to make rational judgments can be influenced by various cognitive biases. One such bias, known as the Hard-Easy effect, has a profound impact on our decision-making processes. This mental […]
Introduction In the realm of decision-making, our past investments often hold a powerful influence over our choices. One cognitive bias that captures this phenomenon is the Sunk Cost Fallacy. The Sunk Cost Fallacy refers to the tendency to continue investing in a failing endeavor, solely due to the resources already committed, even when it no […]
Introduction In the intricate landscape of decision-making, the mental model of mental accounting holds a crucial role. Mental accounting refers to the tendency of individuals to compartmentalize and assign different values to money, resources, and investments based on subjective factors. Anchored in human psychology, this mental model sheds light on how our financial and non-financial […]
Introduction In the realm of decision-making, the Zero to One Theory serves as a mental model that captures the allure of absolutes and extreme thinking. Coined by entrepreneur and investor Peter Thiel, this concept emphasizes the significance of creating something unique and groundbreaking rather than merely iterating on existing ideas. Anchored in human psychology, the […]
Introduction In the vast landscape of human decision-making, our minds are subject to various biases and cognitive traps that can lead us astray from rational thinking. One such mental model is the Ratchet Effect, a phenomenon rooted in human psychology that affects our day-to-day lives, personal decisions, business strategies, and even public policy-making. Understanding the […]